• NZD/USD eased to 0.6008 on Monday, pulling back from seven-month highs near 0.6045 as the Kiwi consolidates strong January gains of around 5%.

The USD/JPY pair attracts some buyers to around 155.55 during the early Asian session on Tuesday. The upbeat US economic data provides some support to the Greenback against the Japanese Yen (JPY).

• GBP/USD eased to 1.3646 on Monday, retreating from the August 2021 high of 1.3847 touched last week as markets position ahead of Thursday's BoE decision.

EUR/USD drops for the second straight day down 0.49%, following last Friday’s metals rout which underpinned the Greenback to the detriment of the shared currency. Also the nomination of Kevin Warsh to lead the Federal Reserve and upbeat US economic data drove the pair lower.

The Reserve Bank of Australia (RBA) is widely expected to raise the Official Cash Rate (OCR) to 3.85% from 3.6% after concluding its first monetary policy meeting of 2026.

The US Bureau of Labor Statistics (BLS) advised markets on Monday that Friday's scheduled publication of the latest Nonfarm Payrolls (NFP) jobs data package will be suspended until federal government operations resume.

EUR/JPY trades around 183.50 on Monday at the time of writing, virtually unchanged on the day, against a backdrop of persistent weakness in the Japanese Yen (JPY) and a cautious tone on the Euro (EUR) ahead of the European Central Bank’s (ECB) monetary policy announcements.

The Australian Dollar (AUD) rebounds against the US Dollar (USD) on Monday, with AUD/USD trimming earlier losses despite a broadly firmer Greenback, as traders reposition ahead of the Reserve Bank of Australia (RBA) interest rate decision due on Tuesday.

• CAD treads water near 1.3550 against USD as markets digest ongoing US government shutdown and suspended economic data releases.

The Canadian Dollar (CAD) extends its losses against the US Dollar (USD) on Monday, as renewed Greenback strength and falling Oil prices weigh on the commodity-linked Loonie. At the time of writing, USD/CAD is trading around 1.3676, up about 0.44% on the day.

USD/JPY trades higher at the start of the week and hovers around 155.60 on Monday at the time of writing, up 0.55% on the day.

The Swiss Franc (CHF) trades on the back foot against the US Dollar (USD) on Monday, as the nomination of former Federal Reserve (Fed) Governor Kevin Warsh as the next Fed Chair helps the Greenback recover from four-year lows.

The Euro (EUR) remains range-bound against the British Pound (GBP) at the start of the week, as traders stay on the sidelines and avoid large directional bets ahead of this week’s interest-rate decisions from the Bank of England (BoE) and the European Central Bank (ECB).

The HSBC report discusses the recent strengthening of the Yen against the US Dollar, which follows a surge in Japanese long-dated bond yields.

Bob Savage, Head of Markets Macro Strategy at BNY, notes the Australian Dollar's potential as the Reserve Bank of Australia (RBA) is expected to hike rates this week due to rising inflation.

According to Brown Brothers Harriman (BBH) analysts, USD/JPY has retraced about 50% of last week’s decline and is trading just under 155.00. The Bank of Japan's recent policy meeting reinforced a cautious hiking bias, with a base case for another rate hike expected at the April 28 meeting.

AUD/USD broke out of a large base last month, triggering an acceleration in the uptrend.

The Pound is posting moderate gains against a weaker Japanese Yen, weighed by Prime Minister Takaichi’s comments on Monday. The pair trades right above 212.00 at the time of writing, up from last week’s lows at the 209.60 area, but also below session highs at 212.68.

An opinion poll indicates that the ruling coalition is set to secure a strong victory in the upcoming election, which could support a weaker Yen.

The AUD/USD pair recoups its early losses and rebounds to near its opening price around 0.6960 during the European trading session on Monday. The Aussie pair bounces back as the US Dollar (USD) ticks down, but broadly remains firm.

NZD/USD trades around 0.6030 on Monday at the time of writing, up 0.10% on the day. The pair strengthens amid supportive macroeconomic signals from China, New Zealand’s main trading partner, which underpin the New Zealand Dollar (NZD) against the US Dollar (USD).

The US Dollar holds minor gains on Monday after rallying nearly 1% on Friday against the Canadian Dollar. The pair, however, found sellers at 1.3675 earlier in the day before trimming some gains, and retreated to 1.3630 at the time of writing.

The Euro is practically flat against the Yen on Monday. trading at 183.55 at the time of writing.

The Pound Sterling (GBP) trades lower against safe-haven currencies, but outperforming risky peers, at the start of the week.

Societe Generale's report argues the European Central Bank (ECB) is likely to maintain interest rates amidst mixed inflation signals. The report highlights that euro area inflation is expected to dip slightly below target in January, with a forecast of 1.8%.

Eurozone HCOB Manufacturing PMI registered at 49.5 above expectations (49.4) in January

Germany HCOB Manufacturing PMI came in at 49.1, above expectations (48.7) in January

France HCOB Manufacturing PMI above forecasts (51) in January: Actual (51.2)

Italy HCOB Manufacturing PMI meets forecasts (48.1) in January

The USD/CHF pair holds onto Friday’s gains near 0.7730 during the European trading session on Monday. The Swiss Franc pair trades firmly as the US Dollar (USD) clings to Kevin Warsh’s nomination for the Federal Reserve’s (Fed) new Chairman-led gains.