GBP/USD advanced 0.1% on Monday, trading around 1.3530 after pulling back from last week's peak near 1.3600.

AUD/USD slipped roughly 0.2% on Monday, trading near 0.7180 after opening the week with a downside gap close to 0.7115. The pair clawed back most of the early weakness through the session, though price remains below Friday's peak around 0.7220.

USD/JPY edged lower by less than 0.1% on Monday, trading in a tight range around 158.80.

Silver price falls more than 1% after gapping down over the weekend as pessimism overtook last Friday’s upbeat mood, as the Strait of Hormuz was closed and the US escalated tensions after seizing an Iran-flagged vessel. XAG/USD trades at $79.78, after reaching a daily high of $79.80.

AUD/USD edges higher on Monday as traders reassess US-Iran tensions after tensions escalated over the weekend around the Strait of Hormuz, while cautious optimism over a potential deal continues to weigh on the US Dollar (USD) and support the risk-sensitive Australian Dollar (AUD).

USD/JPY trades with a downside bias on Monday as the US Dollar (USD) gives up earlier gains amid hopes of a possible deal to end the US-Iran war, despite escalating tensions.

EUR/USD added around 0.2% on Monday, finding a small lift off overnight lows close to 1.1730 to trade near 1.1790 during the European session.

Commerzbank’s Tatha Ghose reviews the Turkish Lira (TRY) outlook ahead of the Turkish central bank’s (CBT’s) key rate decision. He notes inflation expectations for 2026 have risen and that officials appeared hesitant to signal hikes despite depleted reserves.

Societe Generale strategists comment from Brazil’s central bank Banco Central do Brasil (BCB) officials describing March’s 25 bp Selic cut as the start of a calibration process rather than an easing cycle.

GBP/USD recovers some ground after opening the week on a lower note, despite escalating tensions in the Middle East as the US seized an Iran-flagged vessel. At the same time, Tehran threatened to halt talks in Pakistan. The pair trades at 1.3525, up 0.13%.

USD/CAD edges lower on Monday, trimming earlier gains as shifting geopolitical headlines keep volatility elevated across FX markets, while traders also digested the latest Canadian inflation data. At the time of writing, the pair is trading around 1.3663, easing from an intraday high near 1.3709.

Scotiabank strategists Shaun Osborne and Eric Theoret report the Pound (GBP) is steady versus the US Dollar (USD) after recovering from an initial reaction to renewed US–Iran tensions.

ING’s Chris Turner highlights a busy week of European Central Bank speakers before the blackout period, with officials signalling readiness to hike if needed but preferring more time. Markets have removed a 30 April move and see roughly 50% odds of a June hike, which ING expects.

MUFG's Lee Hardman highlights that the Pound (GBP) has underperformed alongside the US Dollar (USD) and Euro (EUR), leaving GBP/USD and EUR/GBP relatively stable near 1.3500 and 0.8700.

EUR/GBP trades around 0.8700 on Monday, remaining broadly stable on the day at the time of writing as opposing forces between the Euro (EUR) and the Pound Sterling (GBP) keep the cross within a narrow range.

The British Pound (GBP) edges higher against the Japanese Yen (JPY) on Monday, with GBP/JPY snapping a two-day losing streak as renewed tensions in the Strait of Hormuz keep Oil prices elevated and the Yen on the defensive, given Japan’s heavy reliance on imported energy.

Rabobank’s Senior FX Strategist Jane Foley highlights that the Japanese Yen (JPY) remains the weakest G10 currency, with USD/JPY trading just below 160 on fears of Japanese Ministry of Finance (MoF) intervention.

The Australian Dollar (AUD) underperforms its major currency peers during the late European trading session on Monday, trading 0.15% lower against the US Dollar (USD) at around 0.7155.

NZD/USD trades around 0.5880 on Monday, slipping by 0.06% at the time of writing as the New Zealand Dollar (NZD) weakens modestly against the US Dollar (USD).

The US Dollar (USD) bounced up from 0.7775 lows against the Swiss Franc (CHF) on Friday, but the ensuing recovery attempts have remained below the 0.7845 level on Monday, which leaves the immediate bearish trend in play.

OCBC strategists Sim Moh Siong and Christopher Wong note that post‑energy shock JGB curve steepening has exposed Bank of Japan (BoJ) credibility risks, with markets increasingly uneasy that the BoJ is behind the curve.

The Pound Sterling (GBP) exhibits a mixed performance against its major currency peers during the European trading session on Monday. The British currency is expected to remain volatile as a slew of United Kingdom (UK) economic data is scheduled to be published this week.

Silver (XAG/USD) has retreated nearly $4 from the monthly high right above $83.00 hit last Friday, as the precious metal consolidates immediately below the $80.00 level, with investors returning to the safe-haven US Dollar, with the Middle East peace process under pressure. 

UOB economists Quek Ser Leang Lee and Sue Ann highlight that EUR/USD spiked to 1.1848 before reversing sharply, leaving the Euro looking overextended on the downside. They see scope for further weakness but expects firm support at 1.1715, with 1.1665 unlikely to be tested.

USD/CAD trades around 1.3690 on Monday at the time of writing, virtually unchanged on the day, after rebounding from the monthly low near 1.3650 reached on Friday.

ING’s Chris Turner notes Sterling has held up even as markets scale back Bank of England tightening expectations to just one 25bp hike this year, while ING expects no change in rates. Political scrutiny of Prime Minister Keir Starmer could weigh on sentiment.

The USD/CAD pair attracts some dip-buyers on Monday, though it struggles to capitalize on the move or find acceptance above the 1.3700 mark amid mixed fundamental cues.

Eurozone Construction Output w.d.a (YoY) remains at -1.9% in February

Eurozone Construction Output s.a (MoM) down to -0.2% in February from previous -0.1%

The USD/JPY pair trades 0.25% higher to near 159.00 during the European trading session on Monday. The pair gains as the Japanese Yen (JPY) extends underperformance, following natural disasters in Japan.