Eurozone Final Services PMI, U.S. ISM Services PMI and Factory Orders

The EUR/USD pair started the week with gains ending the session above the mark of 1.0850 while market participants are awaiting to look to critical US labour figures this week as markets gauge the Federal Reserve’s next move.

The Eurozone Sentix Investor Confidence Index rose from -12.9 in February to -10.5 in March, the latest survey showed on Monday, reaching its highest level since April 2023.

This week, central banks loom heavily over the Euro (EUR) and the US Dollar (USD). Fed Chairman Jerome Powell will be testifying before the US Congress’ House Financial Services Committee about the Fed’s Semi-Annual Monetary Policy Report on Wednesday and Thursday. The European Central Bank (ECB) also gives its latest rate call during Thursday’s European market session.

Gold prices hit a three-month peak on Monday, driven by the uncertainty over the global economy and some bets on early interest rate cuts drove a sharp melt-up in bullion. Gold prices rose 1.49% and ended the session above the level of $2114,00 per ounce.

Demand for the yellow metal was boosted by some indicators that the U.S. economy was cooling, while signs of a recession in Europe and Japan, coupled with underwhelming growth forecasts from China, also factored into safe-haven demand.

Further gains in gold were held back by anticipation of more cues on U.S. interest rates, particularly from Fed Chair Jerome Powell this week.

Crude prices posted a decline on Monday, as widely expected decision from OPEC+ to extend its current pace of production cuts until the second quarter offered little support amid ongoing concerns tepid demand.

Russia and Saudi Arabia, who lead the Organization of the Petroleum Exporting Countries and its allies, or OPEC+, committed to maintaining their current run of 2.2 million barrels per day supply cuts until the end of June.

But expectations of tighter supplies have been countered by a jump in non-OPEC production, led by the U.S. and ongoing worries about the waning demand as top oil importer China struggles with an economic recovery.

Attacks on vessels in the Red Sea by the Yemeni Houthis, in solidarity with Palestine, had furthered this notion, with the Houthis sinking a vessel for the first time ever last week.

U.S. stocks were lower after the close on Monday, as losses in the Consumer Goods, Oil & Gas and Consumer Services sectors led shares lower.

At the close in NYSE, the US 30 declined 0.35%, while the US 500 declined 0.22%, and the US Tech 100 declined 0.06%.

Apple received a 1.84-billion-euro antitrust fine received from the European Commission for allegedly stifling competition from rival music streaming services including Spotify by imposing restrictions on its App store.

Atlanta Fed President Raphael Bostic struck a caution tone on rate cuts Monday, the anticipation of the Fed cutting rates sooner rather than later could feed into the "pent- up exuberance," unleashing a fresh wave of demand-led inflation on stronger economic growth and undoing the Fed's progress.