The Dow Jones Industrial Average traded around 0.4% lower Monday, shedding roughly 200 points to sit near 50,800 after pulling back from the record-area highs above 51,100 set last week.

The Pound Sterling steadies on Monday as speculation of a peace deal between the US and Iran fades, following weekend exchanges of fire that are a headwind for GBP/USD, which trades near 1.3445 at the time of writing.

NZD/USD trades around 0.5930 at the time of writing on Monday, down 1.00% on the day, as the US Dollar (USD) benefits from renewed safe-haven demand amid a risk-off market environment.

EUR/USD comes under renewed selling pressure on Monday as initial optimism surrounding a potential US-Iran peace deal fades amid escalating tensions in the Middle East. At the time of writing, the pair trades around 1.1626, down nearly 0.30% on the day.

Halpenny highlights that the ECB is widely expected to hike at its 11 June meeting, with markets focused on forward guidance for the Euro.

The USD/JPY pair advances toward the 159.70 region, very close to intervention levels near 160.00, on Monday, as the United States Dollar (USD) strengthens following stronger-than-expected manufacturing data, while escalating geopolitical tensions in the Middle East keep market participants cautious

ING economist Adam Antoniak expects the National Bank of Poland (NBP) to keep its main policy rate at 3.75% at the 2 June meeting and beyond, as May CPI surprised to the downside and remains within the target band.

TD Securities’ Senior Commodity Strategist Ryan McKay argues that Oil fundamentals will tighten materially even if a comprehensive deal fully reopens the Strait of Hormuz.

BNP Paribas expects the US economy to grow above potential in 2026, with GDP at 2.4% and inflation overshooting at 3.8%. The bank sees the Fed Funds target range steady at 3.5%-3.75% as the FOMC adopts a two-sided outlook.

USD/CHF edges higher on Monday as fading hopes for a near-term US-Iran peace deal underpin the US Dollar (USD) and keep the Swiss Franc (CHF) under pressure despite stronger-than-expected Swiss Gross Domestic Product (GDP) figures.

Commerzbank’s Volkmar Baur argues that the Japanese Yen will stay pressured in coming months as the Iran conflict keeps the Strait of Hormuz closed, sustaining high Oil prices and hurting Japan’s trade balance.

Nordea notes that ECB officials, including Schnabel, Lane, Rehn and Stournaras, are increasingly signalling a June rate hike and possible further moves to safeguard credibility.

Business activity in the United States' (US) manufacturing sector expanded at an accelerating pace in May, with the Institute for Supply Management's (ISM) Manufacturing Purchasing Managers' Index (PMI) rising to 54 from 52.7 in April. This reading came in better than the market expectation of 53.

Ripple (XRP) is down 2% at press time on Monday as the broader crypto market loses risk appetite.

Brown Brothers Harriman’s (BBH) Elias Haddad expects the Reserve Bank of India (RBI) to keep its policy rate at 5.25%, but warns of a potential hawkish surprise aimed at supporting the Rupee.

United States Construction Spending (MoM) came in at 0.4%, above expectations (0.2%) in April

United States ISM Manufacturing Employment Index climbed from previous 46.4 to 48.6 in May

United States ISM Manufacturing PMI registered at 54 above expectations (53) in May

United States ISM Manufacturing Prices Paid came in at 82.1 below forecasts (85.5) in May

United States ISM Manufacturing New Orders Index: 56.8 (May) vs 54.1

Silver (XAG/USD) trades lower around $74.60 per troy ounce on Monday at the time of writing, down 0.92% on the day.

ING’s Chris Turner notes that Bank of England Governor Andrew Bailey has successfully dampened expectations for further tightening, with priced hikes falling sharply alongside lower Oil prices.

United States S&P Global Manufacturing PMI registered at 55.1, below expectations (55.3) in May

TD Securities’ Ryan McKay and Bart Melek note that Gold has lagged the broader commodity basket, especially Oil and base metals, as geopolitical tensions between the US and Iran persist without a deal.

Canada S&P Global Manufacturing PMI declined to 52.9 in May from previous 53.3

MUFG’s Teppei Ino notes USD/JPY is encountering strong topside resistance and potential intervention risks just below 160.

Bitcoin (BTC) is trading below $72,000 at press time on Monday, as Strategy’s 8-K filing reveals that 32 BTC were sold in late May for approximately $2.5 million, which could fund the preferred stock dividends on June 30.