AUD/JPY posts modest gains around 113.70 on Monday, up 0.13% on the day at the time of writing.

ING’s Chris Turner notes Sterling is softening after UK local elections, as Labour’s losses fuel talk of a leadership contest and a leftward policy shift. He highlights the risk of developments around Manchester Mayor Andy Burnham re-entering parliament.

Deutsche Bank’s Jim Reid and team say markets are digesting a firm US payrolls report that reinforced views of a resilient labour market and persistent inflation risks.

Silver prices (XAG/USD) broadly unchanged on Monday, according to FXStreet data. Silver trades at $80.29 per troy ounce, broadly unchanged 0.08% from the $80.35 it cost on Friday.

The GBP/USD pair fills a major part of its weekly bearish gap opening on Monday and is now looking to extend the momentum further beyond the 1.3600 mark.

The Euro (EUR) is trading moderately higher against the Dollar (USD), yet moving within previous ranges on Monday.

OCBC’s Christopher Wong says British Pound (GBP) has held up despite UK political noise, with local elections pointing to a more fragmented landscape and a medium-term political-risk premium.

Iran's foreign ministry spokesperson Esmaeil Baghaei said during the European trading session on Monday that the proposal to the United States (US) was not “excessive”, and Washington continues to have “unreasonable demands”.

Greece Industrial Production (YoY) rose from previous 1.8% to 8.3% in March

Bank of England (BoE) Monetary Policy Committee (MPC) member Megan Greene said during the European trading session on Monday that the central bank needs to wait to see how Middle East conflicts will flare before making any monetary policy adjustments.

Silver price (XAG/USD) gains ground for the fourth consecutive day, trading around $80.40 per troy ounce during the European hours on Monday.

The USD/JPY pair trades 0.25% higher to near 157.00 during the European trading session on Monday. The pair trades firmly as the Japanese Yen (JPY) underperforms across the board amid growing concerns over Japan’s economic outlook due to higher oil prices.

HSBC economists note that “risk-on” G10 currencies, including the Australian Dollar (AUD), have outperformed the US Dollar (USD) this quarter on improved risk sentiment linked to Middle East de-escalation hopes.

The EUR/JPY cross attracts fresh buyers following a bearish gap opening around the 183.80 region on Monday and extends the steady intraday ascent through the first half of the European session.

Rabobank’s Global Strategist Michael Every highlights United States (US) legislative moves on US Dollar (USD) stablecoins via the CLARITY and GENIUS Acts, stressing how reward structures could entrench Dollar-linked digital assets in global finance.

Crude Oil prices have opened the week in a bullish tone, following US President Donald Trump’s rejection of Iran’s latest peace proposal. The US benchmark West Texas Intermediate (WTI) has jumped by about $4, from Friday’s close around $91.75 to $95.70 at the time of writing.

Societe Generale analysts Michael Haigh, Ben Hoff and Jeremy Sellem argue that reopening the Strait of Hormuz will unleash a double Oil supply shock into an already tightening market.

EUR/CAD inches lower after three days of gains, trading around 1.6090 during the Asian hours on Monday. The currency cross struggles as the commodity-linked Canadian Dollar (CAD) gains ground amid higher oil prices, given Canada’s status as the largest crude exporter to the United States (US).

UOB’s Alvin Liew expects the Federal Reserve (Fed) to keep policy on hold for an extended period in 2026, with only one 25-basis-point cut pencilled in for 4Q26. The shift from earlier expectations of two cuts reflects persistent inflation pressures and delayed labour weakness.

Here is what you need to know on Monday, May 11:

The New Zealand Dollar (NZD) is trading below Friday’s highs against the US Dollar (USD) on Monday. Still, the NZD/USD pair holds within previous ranges, above the late April highs, in the 0.5930 area.

The US Dollar (USD) surrenders half of its early gains during the European trading session at the start of the week, with the US Dollar Index (DXY) dropping to near 98.00 from the intraday high of 98.15.

Dow Jones futures lose 0.12%, trading near 49,630 during the early European hours on Monday, ahead of the United States (US) regular opening. Meanwhile, the S&P 500 decline 0.10% to near 7,410, and the Nasdaq 100 futures inch lower 0.06% toward 29,300.

The USD/CHF pair attracts some buyers at the start of a new week and reverses Friday's decline to the 0.7760 area, or its lowest level since March 10. Spot prices, however, struggle to capitalize on the intraday move up and remain below the 0.7800 mark through the early part of the European session.

Commerzbank notes that India’s April PMIs (Purchasing Managers' Index) show resilient activity in both manufacturing and services despite global uncertainty and higher input costs. External demand remains firm for goods, while domestic demand drives services.

Silver price (XAG/USD) extends its winning streak for the fourth successive day, trading around $80.70 per troy ounce during the Asian hours on Monday.

MUFG’s Teppei Ino reviews recent USD/JPY price action, noting the pair opened near 156.90 and experienced several sharp intraday swings between the 155 and 158 levels during Japan’s holiday period.