West Texas Intermediate (WTI) US Oil trades around $89.95 at the time of writing on Monday, up 1.57% on the day, as geopolitical tensions in the Middle East continue to support energy prices.

BNY’s Bob Savage highlights that South Korean policymakers held an emergency meeting and vowed stern action against speculative FX activity as USD/KRW trades at its weakest since 2009. The National Pension Service has resumed forward FX selling under a higher hedge ratio framework.

DBS Group Research economist Radhika Rao says the Reserve Bank of India (RBI) kept its policy rate at 5.25% with a neutral stance but a clearly hawkish tone, focused on inflation and currency stability.

The New York Federal Reserve Bank released its May Survey of Consumer Expectations (SCE), in which households expect inflation to edge down a tick, despite upward pressures from the Middle East conflict.

The Dow Jones Industrial Average (DJIA) sat almost unchanged into the European afternoon, futures drifting around the 50,750 area after an overnight session that climbed off a low close to 50,500 up toward the 51,000 line before rolling straight over.

USD/CAD trades in a narrow range on Monday, with the Canadian Dollar (CAD) struggling to capitalize on a softer US Dollar (USD) as a mild pullback in Crude Oil prices weighs on the commodity-linked Loonie. At the time of writing, the pair trades around 1.3950, holding near two-month highs.

The Pound Sterling registers modest gains of 0.10% on Monday as risk appetite improved despite attacks exchanged between Iran and Israel, which agreed to halt fire as US President Donald Trump demanded the end of shooting, to resume talks between Washington and Tehran.

The EUR/USD pair trades near 1.1540 on Monday as investors assess mixed Eurozone sentiment data and position ahead of the European Central Bank's (ECB) highly anticipated interest rate decision later this week.

National Bank of Canada’s (NBC) Warren Lovely, Stéfane Marion and Matthieu Arseneau argue that the Bank of Canada (BoC) should add an explicit unemployment rate forecast to its quarterly Monetary Policy Report.

Societe Generale strategists argue that the negative 1Q Gross Domestic Product (GDP) print mainly reflects Irish volatility rather than broad weakness, with ex‑Ireland growth at 0.3% qoq and stronger PMI and French industrial data.

Ripple (XRP) edges higher, trading around $1.15 on Monday as appetite for risk gradually returns across the crypto market. Retail traders appear to be making a cautious return from the sidelines, as reflected in XRP derivatives.

Brown Brothers Harriman’s Elias Haddad (BBH) notes that May Consumer Price Index (CPI) in Norway could be pivotal, with a hot print potentially bringing forward another Norges Bank hike after its surprise May move.

MUFG’s Michael Wan analyses new Reserve Bank of India and government measures that could generate around US$40bn of inflows and partially plug India’s FY2026/27 balance of payments gap.

USD/JPY holds firm on Monday as traders track rapidly changing headlines from the Middle East. Lingering concerns about another intervention by Japanese authorities also limit the pair's upside as the Japanese Yen (JPY) once again tests the 160.00 level against the US Dollar (USD).

BNY’s Bob Savage notes that escalating Middle East tensions and higher U.S. Treasury yields are driving risk-off flows, with the Dollar supported at two‑month highs.

TD Securities economists Robert Both and Emma Lawrence expect the Bank of Canada (BoC) to keep the overnight rate at 2.25% at the June meeting and through 2026, despite softer Canadian data.

OCBC’s Sim Moh Siong expects the European Central Bank (ECB) to deliver a one-off 25 bp ‘insurance’ hike to 2.25%, with updated projections showing higher inflation and weaker growth.

ING economists Peter Virovacz and Zoltán Homolya highlight that the Hungarian Forint (HUF) has sharply appreciated, with investors now treating Hungary as a quasi-eurozone economy.

UOB’s Alvin Liew notes that stronger-than-expected US payrolls and higher Oil prices have sharply reduced expectations for Federal Reserve rate cuts in 2026.

AUD/USD trades around 0.7070 at the time of writing on Monday, up 0.33% on the day, after touching a low near 0.7024, its weakest level in nearly two months.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that the US Dollar (USD) remains firm as United States (US) jobs data, higher Federal Reserve (Fed) rate expectations and rising Oil prices pressure stocks and bonds.

Societe Generale’s United Kingdom (UK) economists highlight political uncertainty around Andy Burnham’s potential Labour leadership challenge and its policy implications, but still expect limited radical change.

BNY’s Bob Savage flags that Euro area Sentix sentiment remains in downturn territory, with Germany still classified in recession despite modest improvement. German manufacturing orders fell sharply in April, driven by autos and machinery, even as sales showed some resilience.

ING’s Chris Turner sees the US Dollar (USD) underpinned by hawkish Federal Reserve repricing and a risk-off tone in equities ahead of key United States (US) Consumer Price Index (CPI) and Producer Price Index (PPI) data.

UOB’s Quek Ser Leang and Lee Sue Ann note that EUR/USD plunged to a three‑month low around 1.1520 after breaking several key supports.

Brown Brothers Harriman’s Elias Haddad (BBH) highlights downside risks for the Pound as UK GDP is expected to contract in Q2 and markets price further Bank of England (BoE) hikes due to second-round inflation effects.

Gold (XAU/USD) recovers some ground on Monday after sliding to its lowest level since March, as traders assess fresh geopolitical developments in the Middle East. However, hawkish Federal Reserve (Fed) expectations continue to cap the upside.