The USD/JPY pair steadies around 158.50 during the Asian trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of Japan’s National Consumer Price Index (CPI) inflation data later on Friday.

USD/CAD extends its losses for the fourth successive day, trading around 1.4090 during Asian hours on Tuesday. The pair loses ground as the commodity-linked Canadian Dollar (CAD) receives support from an upside in oil prices.

GBP/USD gains ground after posting modest losses the previous day, trading around 1.3310 during Asian hours on Tuesday. The currency pair appreciates as the US Dollar (USD) weakens on growing market expectations that the Federal Reserve (Fed) will leave interest rates unchanged.

The NZD/USD pair trades on a flat note around 0.5665 during the early Asian trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of New Zealand’s Consumer Price Index (CPI) inflation data on Thursday.

The EUR/USD pair holds positive ground near 1.1215 during the early European session on Tuesday. However, the potential upside for the pair might be limited as violent protests in France add to concerns about the country's worsening fiscal outlook.

The Australian Dollar registers two days of consecutive gains versus the US Dollar, trading at 0.6980, up more than 0.50% as risk appetite improved, while the Aussie was supported by strong data on China’s GDP and Retail Sales.

The AUD/JPY advances late on Monday during the North American session, up 0.88%, as the cross-pair continues to trade above the resistance trendline of a ‘falling wedge,’ a bullish chart pattern that could open the door to testing higher prices.

The GBP/JPY advances by some 0.16% and extends its rally for the third straight day, with the cross pair trading at 210.93 as it approaches the September 18 high of 211.28, seen as the next key resistance ahead of the 50-day Simple Moving Average (SMA).

The Mexican Peso appreciates against the US Dollar amid speculation that the interest rate differential between Mexico and the US will remain unchanged, with the Federal Reserve projected to hold rates steady at the October meeting. The USD/MNX trades at 18.41, down 0.44%.

NZD/USD trades with a mild positive bias on Monday as the New Zealand Dollar (NZD) benefits from improved risk sentiment. However, a rebound in US Treasury yields following last week’s pullback supports the US Dollar (USD), capping the pair’s upside.

Scotiabank strategists Shaun Osborne and Eric Theoret note GBP/USD is little changed as markets await UK labour data, Consumer Price Index (CPI) and next week’s budget, where investors expect Chancellor Healey to maintain fiscal discipline. Technically, the British Pound (GBP) has staged a strong bullish weekly reversal from the lower end of its sideways range, with scope to retest 1.3650/75 and initial resistance at the 200-day moving average near 1.3435.

Canadian inflation came in under forecast, and USD/CAD rose off its lowest level since September 23 on the release, though it's still on track for a third straight loss. The low just above 1.4050 came in the bars before the numbers, and the price went back above 1.4100 in the release bar.

Royal Bank of Canada (RBC) economist Abbey Xu notes Canadian inflation edged up to 3.1% year-over-year in September, slightly below consensus. Core measures such as Consumer Price Index (CPI) excluding food and energy and the Bank of Canada’s (BoC) CPI-trim and CPI-median remain near 2%.

AUD/USD extends its gains on Monday, trading around 0.6980, up 0.51% on the day at the time of writing. The Australian Dollar (AUD) benefits from hawkish comments by a Reserve Bank of Australia (RBA) official and stronger-than-expected economic growth in China, Australia's largest trading partner.

USD/CHF trades with a mild positive bias on Monday as the US Dollar (USD) steadies following last week’s pullback, which was driven by a sharp decline in US Treasury yields. At the time of writing, the pair trades around 0.8260, up 0.22% on the day.

The Pound Sterling holds steady against the US Dollar at the start of the week, yet the ongoing downtrend is poised to continue unless this week’s UK inflation data reflects elevated energy prices due to the US-Iran conflict. The GBP/USD holds above 1.3300, up 0.07%.

Societe Generale strategists report expectations that Central Bank of the Republic of Türkiye (CBRT) will hold rates at 37% on Thursday versus consensus for a 100bp cut to 36%. They cite softer growth and liquidity strains versus sticky inflation expectations as reasons for caution. They flag Governor comments on allowing Lira weakness, limited inflation pass-through, and new MSCI-related equity market risks alongside a sharp Borsa Istanbul 100 decline.

Scotiabank strategists Shaun Osborne and Eric Theoret report the Euro (EUR) is underperforming as French protests weigh on local assets and widen spreads versus Germany.

The Euro (EUR) trades on the back foot on Monday as political concerns in France weigh on the currency, helping the US Dollar (USD) pause last week’s correction. At the time of writing, EUR/USD trades around 1.1215, down 0.21% on the day.

Brown Brothers Harriman's Ellias Haddad expects Japan’s September Consumer Price Index (CPI) to edge higher but remain below the Bank of Japan’s (BoJ) 2026 projection, limiting pressure for rapid tightening.

USD/CAD pauses its decline on Monday after the Canadian Dollar (CAD) briefly strengthened to its highest level in a month at the weekly open.

Societe Generale strategists note USD/INR remains below 95 in Asia after a 1.9% rally last week, supported by Reserve Bank of India (RBI) measures for Oil importers and speculation curbs. They highlight reported US Dollar (USD) selling by state-run banks and warns RBI’s direct supply to Oil companies could be constrained. FX reserves have dropped sharply and Indian Rupee (INR) shorts in the Reuters poll are at multi‑month highs.

Silver (XAG/USD) kicks off the week on a bullish note but struggles to extend its gains as the US Dollar (USD) and US Treasury yields pause their decline following last week’s correction from recent highs.

GBP/JPY edges higher on Monday, extending its advance for a third consecutive day as the British Pound (GBP) benefits from weakness in the Euro (EUR), while the Japanese Yen (JPY) struggles against most of its major peers despite hawkish signals from the Bank of Japan (BoJ).

The New Zealand Dollar (NZD) extends its winning streak against the US Dollar (USD) for the third trading day on Monday. The Kiwi pair jumps to near 0.5670 as the New Zealand Dollar outperforms amid strong demand for antipodeans.

Brown Brothers Harriman’s Elias Haddad highlights that the Australian Dollar is outperforming, with AUD/USD trading near the top of its recent 0.6900–0.7000 range.

Francesco Pesole at ING expects Canadian inflation to remain contained, keeping a December ‘insurance’ rate hike by the Bank of Canada on the table.

The Japanese Yen (JPY) is down against its major currency peers at the start of the week. In the European trade, the US Dollar (USD) is up 0.17% at around 158.25 against the Asia-Pacific currency.

The Canadian Dollar (CAD) appreciates further against a moderately offered US Dollar (USD) on Monday, with markets awaiting the release of Canada’s Consumer Price Index (CPI) figures for September.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann observe that USD/JPY held within 157.67–158.33 on Friday, closing almost unchanged at 157.99. Short-term momentum is tilting lower, with scope to test 157.50, though a decisive break below that level is not expected.