Antipodeans consolidate near recent lows, yen at 3-month peak as U.S., Iran exchange threats, Asian shares slump- Monday, 

Market Roundup

• Gold jumps to near 7-year high
   
• Oil surges after Trump threatens Iraq sanctions

Economic Data Ahead

• (0200 ET/0700 GMT) German retail sales
   
• (0355 ET/0855 GMT) German Markit PMI composite
   
• (0355 ET/0855 GMT) German Markit PMI services
   
• (0400 ET/0900 GMT) EZ Markit PMI composite
   
• (0400 ET/0900 GMT) EZ Markit PMI services
   
• (0500 ET/1000 GMT) EZ producer price index
   

Key Events Ahead

• No significant event scheduled

FX Beat

DXY: The dollar index fell, halting a 2-day rally, after minutes of the Federal Reserve’s Dec. 10-11 policy meeting, released on Friday, showed policymakers agreed that interest rates were likely to stay on hold for a time as the central bank set its sights on a new articulation of its monetary policy framework. The greenback against a basket of currencies traded down at 96.84, having touched a low of 96.36 on Tuesday, its lowest since July 1.    

EUR/USD: The euro steadied after tumbling to a 1-week low in the previous session on data that showed German unemployment rose more than expected in December, adding to signs that weakness in the manufacturing sector is hurting the labor market. Separate data published on Friday showed that German inflation remained subdued in December. The European currency traded 0.1 percent up at 1.1167, having touched a high of 1.1239 on Wednesday, its highest since August 7. Investors’ attention will remain on a series of data from the eurozone economies, EZ producer price index and Markit PMI's, ahead of the U.S. Markit service and composite PMI. Immediate resistance is located at 1.1188, a break above targets 1.1220. On the downside, support is seen at 1.1138 (10-DMA), a break below could drag it below 1.1122.

USD/JPY: The dollar plunged to a near 3-month trough, as increasing tensions between Iran and the United States sent investors into safe-haven assets. The major was trading 0.05 percent down at 108.06, having hit a low of 107.77 earlier, its lowest since Oct. 10. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. U.S. Markit service and composite PMI. Immediate resistance is located at 108.25, a break above targets 108.46. On the downside, support is seen at 107.52, a break below could take it near at 107.03.

GBP/USD: Sterling consolidated near a 1-week low as investors sentiment weakened following last week's downbeat data on construction and consumer demand, and heightening worries for an economy showing no sign of emerging from Brexit-linked gloom. The major traded flat at 1.3084, having hit a low of 1.3053 on Friday, it’s lowest since Dec. 27. Investors’ attention will remain on the development surrounding Brexit deal, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.3129 (5-DMA), a break above could take it near 1.3181. On the downside, support is seen at 1.3050, a break below targets 1.2989. Against the euro, the pound was trading 0.05 percent down at 85.34 pence, having hit a high of 84.53 on Wednesday, it’s highest since Dec. 17.

AUD/USD: The Australian dollar eased, hovering towards a 1-week low hit in the previous session, amid mounting tensions in the Middle East. The Aussie trades 0.05 percent down at 0.6941, having hit a low of 0.6930 on Friday, it’s lowest since Dec. 26. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.6912, a break below targets 0.6882. On the upside, resistance is located at 0.6985 (5-DMA), a break above could take it