Analyzes

Since late last year, US stock market bulls have been arguing that one of the primary events likely to boost share prices in 2026 was the coming tax refund season.

The US Dollar (USD) gapped higher at the weekly opening, as weekend war headlines spurred panic. The EUR/USD pair dropped towards 1.1500, while Oil prices soared, with the barrel of West Texas Intermediate (WTI) soaring towards $110 after closing last week at around $88.

EUR/USD started the week with a bearish gap and declined toward 1.1500 before recovering slightly. At the time of press, the pair was trading at 1.1525, losing about 0.8% on a daily basis.

The AUD/USD exchange rate rose slightly to 0.7030 on Monday as traders watched the ongoing war in Iran, soaring crude oil prices, and the upcoming consumer inflation report. It has jumped from this month’s low of 0.6945.

The USD/JPY pair scales higher for the third consecutive day and climbs to the 159.00 neighborhood, or its highest level since January 23 at the start of a new week.

Gold is reversing the early dip to near $5,000 on Monday, setting off the week on a bearish note amid relentless US Dollar (USD) demand and soaring Oil prices.