UOB economists Julia Goh and Loke Siew Ting note Malaysia’s May headline inflation rose to 2.0% year-on-year, the highest since July 2024, driven by Food, Housing, Utilities and Transport. Year-to-date inflation of 1.7% supports their full-year 2.0% forecast.

Ripple (XRP) gains momentum on Monday, trading above $1.15 as the crypto market widely recovers.

MUFG’s Michael Wan notes that Asian currencies should benefit from stronger regional growth differentials versus the US, particularly in AI-related export economies such as South Korea, Taiwan, Malaysia and Singapore.

The AUD/USD pair fell near the 0.700 area on Monday, struggling to extend gains as investors remain cautious ahead of the upcoming US Personal Consumption Expenditures Price Index (PCE), the Federal Reserve’s (Fed) preferred inflation gauge.

EUR/USD trades under pressure on Monday, extending losses from the previous week as expectations of a hawkish Federal Reserve (Fed) underpin the US Dollar (USD), even as easing tensions in the Middle East curb safe-haven demand for the Greenback.

The Dow Jones Industrial Average (DJIA) booked a green close on Monday, adding roughly 167 points, or 0.3%, on a session that was anything but bullish underneath.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that USD/SGD remains supported around 1.29 as the Singapore Dollar (SGD) Nominal Effective Exchange Rate (S$NEER) trades near the top of its band, implying the pair should hover close to this level.

The Pound Sterling advances some 0.14% on Monday as the US-Iran negotiations laid a “good foundation” according to US Vice President JD Vance, after ending the first round of talks in Switzerland.

BNY’s Geoff Yu highlights that iFlow Carry has turned negatively significant for the first time in 2026, signalling ongoing unwinding of carry trades but also a potential contrarian opportunity.

The USD/JPY pair sank as low as 161.07 on Monday, retreating from highs near 161.90 as traders remain alert to possible Japanese intervention after the pair moved close to a four-decade high.

Nomura’s Dominic Bunning highlights that British Pound (GBP) has reacted calmly to Keir Starmer’s resignation, with investors focusing on the prospect of Andy Burnham becoming Prime Minister and his choice of Chancellor.

Silver (XAG/USD) trades around $65.90 at the time of writing on Monday, up 1.69% on the day and snapping a three-day losing streak. The white metal is attracting renewed investor interest as markets assess the implications of diplomatic progress between the United States (US) and Iran.

National Bank of Canada's (NBC) Matthieu Arseneau and Alexandra Ducharme note that Canadian headline inflation rose to 3.2% in May, above the Bank of Canada’s (BoC) target range, driven mainly by higher gasoline and food prices.

TD Securities, led by Oscar Munoz and Eli Nir, reports that the Federal Reserve (Fed) has shifted hawkishly and is expected to keep policy rates on hold through 2026 and 2027.

Deutsche Bank’s Shreyas Gopal notes that markets had largely anticipated Andy Burnham becoming UK Prime Minister by the Autumn Budget, leaving the risk premium in Sterling broadly unchanged.

Royal Bank of Canada (RBC) economist Abbey Xu notes that Canadian inflation rose to 3.2% year-over-year in May, mainly due to higher energy prices, airfares and food costs.

Eurozone Consumer Confidence came in at -17.7, below expectations (-17.5) in June

USD/CAD trades little changed on Monday after a brief bout of weakness following stronger-than-expected Canadian inflation data. At the time of writing, the pair is trading around 1.4165, hovering near its highest level since April 2025.

TD Securities’ Ryan McKay and Bart Melek highlight that crude Oil and petroleum product flows from the Middle East have rebounded sharply, but this surge is seen as temporary as trapped Gulf barrels clear.

European Central Bank (ECB) President Christine Lagarde said on Monday that policymakers are not yet seeing signs that the latest inflation shock requires a more aggressive policy response, even as geopolitical tensions add fresh uncertainty to the Eurozone outlook.

Societe Generale’s Kit Juckes notes that UK political change is generating only modest Sterling (GBP) weakness, with EUR/GBP seen one to two percentage points higher and GBP/USD likely to test 1.30 this summer.

Bitcoin (BTC) upholds a subtle recovery outlook on Monday, trading above $64,000 as investors reengage amid easing geopolitical tensions, particularly in the Middle East. Altcoins are broadly rising, led by Zcash (ZEC) and Bittensor (TAO), indicating a positive short-term turnaround.

Rabobank’s Senior Macro Strategist Teeuwe Mevissen notes that divergence between the Federal Reserve (Fed) and European Central Bank (ECB) is becoming more important for EUR/USD.

West Texas Intermediate (WTI) US Oil declines sharply on Monday and trades around $74.50 at the time of writing, down 2.54% on the day.

BNY’s Geoff Yu notes that progress in U.S.–Iran talks and a ceasefire framework for Lebanon have helped Oil markets price a more durable de-escalation, supporting a broader risk-positive environment.

ING’s Francesco Pesole expects Fedspeak and developments around the Strait of Hormuz to be the key drivers for the Dollar this week, with front-end USD rates remaining central for DXY.

Gold (XAU/USD) edges higher on Monday as traders react to signs of progress in US-Iran negotiations following the first round of direct talks held earlier in the day in Switzerland, with Pakistan and Qatar acting as mediators.