Gold (XAU/USD) trades around $4,340 at the time of writing on Monday, up 2.86% on the day and extending the rebound that began on Thursday from the $4,024 area.

The Australian Dollar (AUD) trims previous gains against the US Dollar (USD) on Monday, as markets ponder the peace agreement between the US and Iran, ahead of a central bank-busy week.

Bitcoin (BTC) steadies above $65,700 at the time of writing on Monday, after recovering nearly 4% in the previous week. BTC recovery was boosted following Sunday’s news that the US and Iran have reached a preliminary peace deal, lifting the risk appetite.

Societe Generale’s Kenneth Broux and colleagues note Brent has dropped sharply after the US–Iran MoU and reopening prospects for the Strait of Hormuz, with prices down 35% from April peaks but still above pre-war levels.

The Japanese Yen (JPY) continues to trade firmly around the psychologically crucial 160.00 level against the US Dollar.

Rabobank’s FX Strategy team at RaboResearch Global Economics & Markets discusses how the Dollar initially benefited from safe haven flows during the Iran war, but has since softened as a ceasefire memorandum eased market tensions and tempered Fed hike expectations.

HSBC Asset Management’s Investment Weekly highlights how higher Oil prices, China’s export surge and US AI investment are reshaping the global macro backdrop.

The Euro (EUR) maintains its positive tone against the US Dollar (USD) on Monday, with the EUR/USD pair trading near 10-day highs above 1.1600.

The Japanese Yen (JPY) trades lower against its major currency peers during the European trading session on Monday, while the USD/JPY pair is marginally lower at around 160.15 after recovering its early losses.

AUD/USD trades around 0.7070 at the time of writing on Monday, up 0.35% on the day, benefiting from renewed risk appetite after the United States (US) and Iran announced a framework agreement aimed at ending their conflict.

MUFG’s Lee Hardman notes that the US Dollar has extended losses after the US and Iran reached an interim agreement to end conflict and reopen the Strait of Hormuz.

Brown Brothers Harriman (BBH) expects the Riksbank to keep its policy rate at 1.75% for a sixth consecutive meeting and to lean against market pricing for a 25 bps hike by year-end.

Brown Brothers Harriman expects the Bank of England to hold at 3.75% with a 7–2 vote and sees the first fully priced 25 bps hike in November.

Silver prices (XAG/USD) rose on Monday, according to FXStreet data. Silver trades at $70.69 per troy ounce, up 3.91% from the $68.03 it cost on Friday.

West Texas Intermediate (WTI) crude falls around 5%, reaching a three-month low of $78.60 per barrel on Monday. Crude oil prices declined to three-month lows on easing supply concerns following reports that the United States (US) and Iran had reached a deal to end their conflict.

Societe Generale highlights USD/JPY trading near 160, with dips bought despite lower Oil and expectations of a 25 bp BoJ hike.

The Eurozone industrial sector activity rises at a moderate pace of 0.1% in April, slower than 0.3% estimates, according to data published by Eurostat. March’s Industrial Production data was revised higher to 0.4% from 0.2%.

Societe Generale reports EUR/USD trading between 1.1569 and 1.1622 overnight, with the Euro bid above the 1.16 handle on the US–Iran MoU and lower Oil prices.

Eurozone Trade Balance s.a. dipped from previous €3.5B to €1.3B in April

Eurozone Trade Balance n.s.a. came in at €-1B below forecasts (€7.8B) in April

Eurozone Industrial Production w.d.a. (YoY) climbed from previous -2.1% to 0.3% in April

Eurozone Industrial Production s.a. (MoM) came in at 0.1%, below expectations (0.3%) in April

USD/CHF depreciates nearly 0.5%, trading around 0.7930 during the European hours on Monday. The technical analysis of the daily chart indicates the pair is remaining within the ascending channel pattern, signaling an ongoing bullish bias.

The Euro (EUR) shows a positive stance against the British Pound (GBP) on Monday, with bulls pushing toward one-week highs in the 0.8645 area.

ING’s Chris Turner highlights several risks for the Pound this week, centred on the Bank of England meeting and a key Labour by-election.

The Euro (EUR) outperforms its major currency peers during the European trading session on Monday, trading 0.26% higher to near 185.85 against the Japanese Yen (JPY).

Brown Brothers Harriman expects the Bank of Japan to resume tightening with a 25 bps hike to 1.00%, but sees limited scope for a sustained Japanese Yen rally.