The EUR/USD pair opens with a bullish gap at the start of a new week as renewed optimism over a potential US-Iran peace deal weighs heavily on the safe-haven US Dollar (USD).

EUR/JPY extends its gains for the second successive day, trading around 184.90 during the Asian hours on Monday.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.05 during the Asian trading hours on Monday. The DXY loses momentum as the prospect of a deal to end the Iran war buoyed risk appetite. 

NZD/USD depreciates after opening at a higher level from the previous close, still remaining in the positive territory and trading around 0.5870 during the Asian hours on Monday.

On Monday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.8318 compared to Friday's fix of 6.8373 and 6.7880 Reuters estimate.

The AUD/USD pair opens with a modest bullish gap at the start of a new week and sticks to intraday gains above mid-0.7100s through the Asian session.

The GBP/USD pair gains traction to near 1.3480 during the early Asian session on Monday. The US Dollar (USD) weakens against the British Pound (GBP) as the United States (US) and Iran signal peace progress. Trading volumes are expected to be light due to a market closure for Memorial Day in the US. 

Silver price (XAG/USD) rises nearly 4% after registering losses in the previous day, trading around $78.50 per troy ounce during the Asian hours on Monday.

The USD/CAD pair kicks off the new week on a weaker note, eroding a part of Friday's strong gains to the 1.3825 region, or the highest level since April 13. Spot prices, however, lack follow-through selling and stabilize around the 1.3800 round figure amid mixed cues.

The USD/JPY pair declines to near 158.90 during the early Asian session on Monday. Progress in talks between the United States (US) and Iran to bring an end to the Middle East conflict drags the US Dollar (USD) against the Japanese Yen (JPY).

In an Italian talkshow Che Tempo Che Fa on Sunday, the European Central Bank (ECB) President Christine Lagarde said that the central bank is likely to raise the inflation forecast at its monetary policy meeting next month.

Gold price (XAU/USD) rises to near $4,570 during the early Asian trading hours on Monday. The precious metal attracts some buyers on weaker US Dollar (USD) after the reports that the United States (US) and Iran are closing in on a deal that would reopen the Strait of Hormuz.

West Texas Intermediate (WTI) – the US oil benchmark – has witnessed a steep bearish opening gap on Monday, now losing nearly 5%, on its way to surrendering the $90 threshold.

The EUR/USD pair gathers strength to around 1.1640 during the early Asian session on Monday. The Euro (EUR) edges higher against the US Dollar (USD) as US-Iran peace deal hopes improve risk sentiment.

The AUD/USD pair gains momentum to near 0.7160 during the early Asian session on Monday.

Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week.

The US Securities and Exchange Commission (SEC) has delayed plans to introduce an exemption that would allow crypto firms to trade tokenized equities, according to a Bloomberg report on Friday.

The Ethereum Foundation (EF) has come under pressure again following high-profile departures over the past few days, with researchers Carl Beek and Julian Ma announcing their exits on Monday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann expect USD/SGD to edge lower intraday toward 1.2760, though a sustained break is seen as unlikely, with major support at 1.2730 intact.

Intercontinental Exchange (ICE), parent company of the NYSE, has partnered with OKX to roll out perpetual futures contracts for its Brent Crude and WTI Crude energy benchmarks.

The AUD/USD edges lower during the North American session, poised to remain sideways within key technical support and resistance levels, with the 20-day Simple Moving Average (SMA) at 0.7187 and the 50-day SMA at 0.7095. At the time of writing, the pair is trading around 0.7137, down 0.17%.

DBS Group Research economists Radhika Rao and Chua Han Teng highlight that ASEAN-6 economies are experiencing asymmetric inflation outcomes despite a common energy shock. Indonesia and Malaysia show relatively contained inflation, while Thailand, Vietnam and Philippines face higher readings.

Japan CFTC JPY NC Net Positions declined to ¥-93.9K from previous ¥-75.1K

United States CFTC Oil NC Net Positions climbed from previous 169.9K to 172.6K

United States CFTC Gold NC Net Positions fell from previous $171.6K to $159.8K

United Kingdom CFTC GBP NC Net Positions declined to £-64.3K from previous £-43.1K

Australia CFTC AUD NC Net Positions climbed from previous $85K to $85.6K