Cautious trade around 98.50 is giving way to a break lower

The AUD/USD exchange rate remained in a narrow range on Monday ahead of the upcoming Australian inflation report.

The Euro (EUR) extends gains for the second consecutive day against the US Dollar (USD) on Monday, as investors hold moderate optimism that the Iran-US level might yield a positive outcome. German GfK consumer sentiment data disappointed, but the impact on the common currency has been mild so far.

The EUR/USD exchange rate held steady at 1.1700 on Monday morning ahead of a busy week in which the US and Europe will release their numbers.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, turns lower for the second straight day on Monday and moves further away from a one-week high, around the 99.00 mark touched last Thursday.

ING analysts Chris Turner notes the US Dollar (USD) starts the week slightly offered as investors focus on positive geopolitical and political developments, but highlights that high Oil prices and elevated rates keep risks alive.

The GBP/USD exchange rate rebounded on Friday after reports emerged that the Iranian Foreign Minister was traveling to Pakistan, possibly to meet with the US…

The GBP/USD pair attracts some dip-buyers in the vicinity of the 1.3500 psychological mark and climbs to over a one-week top during the Asian session on Monday. Spot prices currently trade just below mid-1.3500s, up 0.10% for the day, and seem poised to appreciate further.

AUD/USD outlook: Bullish momentum builds above 0.7090 as risk sentiment improves, with upside targets near 0.7300 on breakout.

The USD/CAD pair attracts some sellers following a modest Asian session uptick to the 1.3680 area on Monday, though it lacks follow-through selling.