The Pound Sterling appreciates sharply against the US Dollar on Monday after US President Donald Trump delayed further military action against Iran, adding that talks between the two countries were productive and could end hostilities in the Middle East.

NZD/USD trades around 0.5850 on Monday at the time of writing, up 0.24% on the day, benefiting from a broader pullback in the US Dollar (USD) amid a relative easing of geopolitical tensions.

BNP Paribas projects Eurozone growth at 1.6% in 2026, supported by German fiscal measures, higher military and AI-related investment, and a resilient labour market. Inflation is expected to stay below 2% in 2026 before gradually accelerating in 2027.

EUR/USD rebounds on Monday, erasing earlier losses as the Euro (EUR) gains traction amid broad US Dollar weakness after President Donald Trump delayed planned strikes on Iran, reducing safe-haven demand for the Greenback.

MUFG analysts see recent Yen weakness as fundamentally justified and expect further downside for the Japanese Yen if the Middle East crisis persists.

USD/JPY falls by 0.40% on Monday and trades around 158.60 at the time of writing, after dropping from the 159.60 area to an intraday low near 158.25, as the US Dollar (USD) weakens following an unexpected geopolitical development.

The Canadian Dollar (CAD) struggles for direction against the US Dollar (USD) on Monday, even as the Greenback weakens following US President Donald Trump’s decision to postpone planned strikes on Iranian energy infrastructure

ING’s Francesco Pesole notes that EUR/GBP is trading modestly above his team’s short‑term fair value estimate.

OCBC highlights that the Bank of England’s (BoE) latest communication has triggered aggressive market repricing, with almost 85 bps of hikes now priced for 2026. This makes the bank’s previously expected BoE cut in 3Q26 less certain, with an extended hold more plausible.

MUFG Bank analysts note the Swiss Franc (CHF) has underperformed other G10 currencies since the Middle East conflict began, as the Swiss National Bank (SNB) has strongly signalled a willingness to counter excessive CHF strength.

The AUD/USD pair trades heavily volatile during the European trading session on Monday after the announcement from United States (US) President Donald Trump that he has instructed the Department of War to pause scheduled military attacks on Iranian power plants for five days.

BNY’s Head of Markets Macro Strategy Bob Savage argues that the European Central Bank’s (ECB) hawkish tilt in response to the Iran-driven energy shock has pushed Eurozone front-end rates higher, even as inflation expectations remain contained.

EUR/JPY rebounds from its intraday lows but remains down 0.30% on Monday, trading near 183.65 at the time of writing, as the Japanese Yen (JPY) loses some ground following signs of geopolitical de-escalation.

MUFG’s Senior Currency Analyst Lee Hardman notes that the Japanese Yen has been more resilient than other G10 currencies versus the US Dollar, with USD/JPY holding just below 160.00.

The Pound Sterling extends its intraday decline against the US Dollar (USD), trading 0.6% down to near 1.3260 during the European trading session on Monday. The GBP/USD pair tumbles as escalating conflicts in the Middle East have further diminished investors’ risk appetite.

ING strategist Francesco Pesole highlights that aggressive repricing of European Central Bank tightening, with three hikes now fully priced, may have gone too far.

HSBC economists report that the Reserve Bank of Australia (RBA) raised its cash rate to 4.10% in March, marking a second consecutive hike driven mainly by domestic capacity constraints and inflation concerns. They still see additional tightening as likely, possibly in May.

USD/KRW trades around 1,510.00 during the European hours after retreating from a 17-year high of 1,516.76 reached earlier on Monday. Heightened risk aversion triggered foreign outflows of 1.8 trillion Won, putting downward pressure on the South Korean Won (KRW).

The EUR/USD pair weakens as the US Dollar (USD) trades higher due to escalating Middle East conflicts, trading 0.3% lower to near 1.1535 during the European trading session on Monday.

Commerzbank’s Michael Pfister highlights that the Pound has held up despite a weak UK real economy, persistent inflation and strained public finances, helped by reduced political risk and aggressive Bank of England (BoE) repricing from cuts to multiple hikes.

Silver price (XAG/USD) continues its losing streak for the fifth consecutive day, down by nearly 5%, and is trading around $64.60 per troy ounce during the European hours on Monday.

Francesco Pesole at ING expects Japan’s CPI to slow further due to subsidies, though core‑core inflation should stay above 2%, keeping the Bank of Japan (BoJ) cautious about ruling out further hikes.

The Canadian Dollar (CAD) trades higher against its major currency peers, but is marginally down to near 1.3735 against the US Dollar (USD) during the European trading session on Monday.

Danske Research Team points out that the Euro was the second-best performing G10 currency last week after the Norwegian Krone (NOK), despite elevated energy prices.

The USD/JPY pair trades 0.22% higher to near 159.60 during the European trading session on Monday. The pair gains as the US Dollar (USD) trades firmly amid firm demand for safe-haven assets, in the wake of the war in the Middle East.

Commerzbank’s Thu Lan Nguyen argues that despite what is described as the greatest threat to energy security in history, implied EUR/USD volatility remains unusually low.

The GBP/USD pair attracts some sellers to around 1.3315 during the early European session on Monday, dragged by a firmer US Dollar (USD). The preliminary readings of Purchasing Managers Index (PMI) from the United Kingdom (UK) and the United States (US) will be released later on Tuesday.

The Australian Dollar underperforms its major currency peers, is down 0.7% to near 0.6970 against the US Dollar (USD) in the early European trade on Monday.

The Indian Rupee (INR) extends its downfall against the US Dollar (USD) at the start of the holiday-shortened week. Indian markets will remain closed on Thursday due to Shri Ram Navami.

The EUR/USD pair is down 0.2% to near 1.1545 during the late Asian trading session on Monday. The major currency pair is under pressure as the US Dollar (USD) gains amid an increase in demand for safe-haven assets due to escalating conflicts in the Middle East.