Societe Generale strategists expect the central bank of Mexico, Banxico to hold rates at 6.50% on Thursday, with the statement potentially challenging market pricing for 80bp of tightening over 12 months.

The British Pound (GBP) is. showing the strongest performance among the major currencies on Monday, rallying 0.3% against the Japanese Yen, 0.14% against the Euro, and ticking up 0.05% against the Dollar after reversing previous losses.

ING’s Francesco Pesole sees a decent risk that EUR/USD will need to test 1.140 as lingering post-Fed Dollar momentum plays out before any renewed upward pattern.

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).

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).

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.

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.

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.

The publication of Canada’s May Consumer Price Index (CPI) figures on Monday will be the focus of attention.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that GBP/USD remains in a corrective phase after testing April’s low near 1.3160 and rebounding.

The GBP/JPY cross rebounds nearly 100 pips from the daily low, filling a modest bearish gap down opening on Monday and hitting a fresh daily high near the 213.70 region during the early European session.

USD/CAD continues to gain ground for the eighth successive day, trading around 1.4180 during the early European hours on Monday. The technical analysis of the daily chart indicates the pair is moving upwards within the ascending channel pattern, signaling a persistent bullish bias.

The EUR/GBP cross gathers strength to around 0.8670 during the early European trading hours on Monday. The British Pound (GBP) weakens against the Euro (EUR) due to political uncertainty in the United Kingdom (UK).

The New Zealand Dollar (NZD) ticks down against the US Dollar (USD) on Monday, trading at 0.5730 at the time of writing, holding losses from last week’s sell-off and drawing closer to the year-to-date low of 0.5681.

The GBP/USD pair recovers some of its early losses, but is still 0.1% down to near 1.3220 during the early European trading session on Monday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight that EUR/USD remains under pressure after briefly dipping to 1.1416 before rebounding.

Silver (XAG/USD) rises to around $66.35 during the early European trading hours on Monday. The precious metal attracts some buyers amid progress of US-Iran peace deal, easing tension in the Middle East.

The Indian Rupee (INR) trades firmly against the US Dollar (USD) in the opening session on Monday.