Following the strong risk rally witnessed in the second half of the previous week, markets seem to have turned cautious to begin the new week as investors assess the latest developments.
The US Dollar Index stages a rebound after losing nearly 4% last week and US stock index futures trade in negative territory.
EUR/USD gained more than 100 pips on Friday and registered its highest weekly close since the last week of June above 1.0300. The pair seems to have gone into a consolidation phase and was last seen trading in negative territory slightly above 1.0300.
GBPUSD reached its highest level since August 26 at 1.1855 late Friday and posted impressive weekly gains. The pair is staging a downward correction and was last down 0.7% on the day at around 1.1750.
USDJPY closed the fourth straight week in negative territory and dropped below 140.00 for the first time in 10 weeks on Friday. USDJPY is currently trading in a tight range near 139.50.
Gold capitalized on risk flows and the broad-based US Dollar weakness last week and gained over 5%. XAUUSD stays on the back foot early Monday and trades at around $1,760.