The Canadian Dollar (CAD) trades lower against its major currency peers during the European trading session on Monday, ahead of the Consumer Price Index (CPI) data for May, which will be published at 12:30 GMT.

USD/JPY advances toward 161.70 on Monday, gaining around 0.25% at the time of writing, as the US Dollar (USD) benefits from both renewed risk aversion linked to geopolitical tensions in the Middle East and stronger expectations for tighter monetary policy in the United States (US).

Bitcoin (BTC) trades around $64,000 at the time of writing on Monday after declining nearly 4% in the previous week. BTC investors remain cautious despite signs of progress in the first round of US-Iran peace talks in Switzerland.

Deutsche Bank strategists report that after a hawkish Federal Open Market Committee (FOMC) under new Chair Kevin Warsh, they now forecast two 25 bps Fed hikes in 2026, likely in September and December, taking the fed funds rate to around 4.1%.

The Australian Dollar (AUD) trades slightly lower at around 0.7003 against the US Dollar (USD) during the European trading session on Monday.

The British Pound (GBP) accelerates its recovery against the Japanese Yen (JPY)  on Monday to test levels above 214.00 at the time of writing. The Sterling is being boosted across the board, as investors welcome the decision of the United Kingdom Prime Minister, Keir Starmer, to step down.

EUR/GBP comes under pressure on Monday as markets react positively to UK Prime Minister Keir Starmer's resignation, with the British Pound (GBP) outperforming most of its major peers.

OCBC strategists Sim Moh Siong and Christopher Wong note that the Bank of Japan’s (BoJ) 25 bp hike to 1.0% and confirmation of tapering ending in 2027 have not materially supported the Japanese Yen (JPY).

EUR/JPY advances toward 185.30 on Monday, gaining 0.16% at the time of writing, as markets prepare for the release of the Eurozone’s preliminary HCOB Purchasing Managers Index (PMI) data and closely watch speeches from the President of the European Central Bank (ECB).

Deutsche Bank strategists note that Brent Oil has reversed earlier gains as progress in US–Iran talks reduces fears over disruptions at the Strait of Hormuz.

Silver prices (XAG/USD) rose on Monday, according to FXStreet data. Silver trades at $66.33 per troy ounce, up 2.30% from the $64.84 it cost on Friday.

ING strategists Warren Patterson and Ewa Manthey say Gold fell for a third straight session and week, losing over 2% as investors reassessed US-Iran negotiations and US monetary policy.

The British Pound (GBP) nudged up above 1.3200 against the  US Dollar (USD) on Monday and maintains a mild positive tone, despite news that Sir Keir Starmer resigned as Prime Minister of the United Kingdom and Leader of the Labour Party.

MUFG’s Lee Hardman notes the US Dollar remains firm after last week’s breakout, driven by a hawkish repricing of Fed rate hike expectations and a rebound in US yields. Markets now see roughly even odds of a near-term Fed hike, even as Oil prices fall on progress in US-Iran talks.

Shiba Inu (SHIB), the dog-themed meme coin that became one of the biggest success stories in crypto and turned early buyers into crypto millionaires, is facing tough times. Its price has fallen more than 32% so far this year, and it is down 95% from its all-time high in 2021.

Silver price (XAG/USD) advances after three days of losses, hovering around $66.00 per troy ounce during the European hours on Monday. However, Silver price gains ground as oil prices and inflation concerns ease following a positive development regarding the United States (US)-Iran peace deal.

The NZD/USD pair drifts lower for the fourth consecutive day – also marking the sixth day of a negative move in the previous seven – and drops to its lowest level since April 8 during the first half of the European session on Monday.

Societe Generale highlights that USD/CAD has accelerated higher after breaking a descending trend line in place since last year, signalling a momentum shift and an attempted breakout from a broad multi-month range.

The Australian Dollar (AUD) extends losses against the US Dollar (USD) for the fifth consecutive day on Monday, trading just below the psychological 0.7000 level and drifting towards the 11-week low of 0.6979.

AUD/JPY holds gains after experiencing volatility, trading around 113.10 during the European hours on Monday. The currency cross remains heavily bid as the Japanese Yen (JPY) continues to lose ground to widespread carry-trade activity.

United Kingdom (UK) Prime Minister Keir Starmer announces his resignation and says that nominations for new contender will open on July 9.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann keep a negative stance on AUD/USD after a period of quiet price action around 0.7020.

The Euro (EUR) trades 0.23% lower against the US Dollar (USD) at around 1.1444 during the European trading session on Monday.

The US Dollar (USD) keeps marching higher against the Swiss Franc (CHF)  on Monday, trading at year-to-date highs around 0.8085 at the time of writing and starting to look overstretched after having rallied nearly 2% over the last four trading days.The US Dollar is drawing support from monetary poli

Danske Research Team notes that EUR/USD extended its latest decline on Friday, breaking firmly below the 1.15 mark as European yields rose in a bearish steepening.

The USD/JPY pair catches aggressive bids at the start of a new week and builds on its steady intraday ascent through the early European session.

Commerzbank’s Michael Pfister highlights rising political uncertainty around UK Prime Minister Keir Starmer and the potential succession of Andy Burnham, stressing implications for the Pound. He warns that a drawn-out leadership struggle or looser fiscal stance could weigh on Sterling.