USD/JPY holds firm on Monday as traders track rapidly changing headlines from the Middle East. Lingering concerns about another intervention by Japanese authorities also limit the pair's upside as the Japanese Yen (JPY) once again tests the 160.00 level against the US Dollar (USD).

OCBC’s Sim Moh Siong expects the European Central Bank (ECB) to deliver a one-off 25 bp ‘insurance’ hike to 2.25%, with updated projections showing higher inflation and weaker growth.

AUD/USD trades around 0.7070 at the time of writing on Monday, up 0.33% on the day, after touching a low near 0.7024, its weakest level in nearly two months.

UOB’s Quek Ser Leang and Lee Sue Ann note that EUR/USD plunged to a three‑month low around 1.1520 after breaking several key supports.

Brown Brothers Harriman’s Elias Haddad (BBH) highlights downside risks for the Pound as UK GDP is expected to contract in Q2 and markets price further Bank of England (BoE) hikes due to second-round inflation effects.

The Euro (EUR) turned positive against the US Dollar (USD) in the daily charts heading into the US session opening on Monday as the EUR/USD bounced to 1.1540 after hitting three-month lows at 1.1499.

NZD/USD trades around 0.5830 on Monday at the time of writing, up 0.62% on the day after rebounding from a two-month low touched during the Asian session.

Rabobank strategists Molly Schwartz and Jane Foley report that Canadian Dollar (CAD) net short positions have surged about 36% to their highest level since December 2025.

The US Dollar is rallying for the second consecutive day against the Swiss Franc (CHF) on Monday, reaching levels near 0.8000 for the first time in the last two months.

EUR/JPY trades around 184.10 on Monday at the time of writing, down 0.32% on the day, as the Japanese Yen (JPY) continues to benefit from a favorable backdrop driven by expectations of higher interest rates in Japan and renewed warnings from Japanese authorities regarding currency weakness.

Brown Brothers Harriman’s Elias Haddad (BBH) expects the Bank of Canada to keep its policy rate at 2.25% and maintain two-way optionality, as contained inflation allows an extended pause.

UOB’s Quek Ser Leang and Lee Sue Ann flag that AUD/USD posted its second-largest one‑day loss of the year, dropping toward 0.7040. Near term, the pair may test 0.7020, though a sustained break below is seen as unlikely.

The Euro (EUR) consolidates losses against the US Dollar (USD) on Monday, trading at 1.1515 at the time of writing, following a 0.75% sell-off on Friday.

Societe Generale analysts say USD/JPY has rebounded after defending a multi‑month ascending trend line around 155.50/155.00 and is now challenging the April high. Support is seen at 159.20, with projections at 161.20 and 162.

Eurozone Sentix Investor Confidence: -13.4 (June) vs -16.4

Silver price (XAG/USD) extends its losses for the second successive day, trading around $67.00 per troy ounce during the European hours on Monday.

The GBP/USD pair trades marginally lower to near 1.3338 during the European trading session on Monday. The pair posts a fresh almost three-week low near 1.3316 in the day, as the US Dollar (USD) outperforms amid growing expectations that the Federal Reserve (Fed) will raise interest rates this year.

ING’s Chris Turner notes EUR/USD was hit hard as the Dollar surged, increasing pressure on the European Central Bank to sound hawkish while delivering a 25bp hike to 2.25%.

The GBP/JPY cross stages a modest recovery from over a one-week low, around the 213.30 region touched earlier this Monday, and sticks to modest intraday gains through the first half of the European session.

The Euro (EUR) has turned lower against the British Pound (GBP) on Monday, although it remains moving within Friday's range. The pair retreated from session highs near 0.8650 and trades at 0.8637 at the time of writing, as downbeat German Factory Orders have set the Euro under renewed pressure.

UOB’s Quek Ser Leang and Lee Sue Ann note USD/JPY held above 160.00 and closed modestly higher around 160.25. Intraday, mild upward momentum points to a move toward 160.50, with major resistance at 160.75 unlikely to be threatened immediately.

BNY’s Bob Savage expects the Bank of Canada (BoC) to keep rates unchanged against a backdrop of technical recession and softer growth.

The Australian Dollar (AUD) is under pressure against the US Dollar (USD) as traders have raised bets supporting interest rate hikes by the Federal Reserve this year, with the AUD/USD pair posting a fresh almost eight-week low at around 0.7025.

The USD/CAD pair trades in positive territory around 1.3945 during the early European session on Monday. The US Dollar (USD) strengthens against the Canadian Dollar (CAD), the highest since April 3, amid intensified geopolitical tensions in the Middle East. 

The Japanese Yen (JPY) extends losses against the US Dollar (USD) on Monday, with the USD/JPY pair trading at 160.30 at the time of writing.

UOB’s Quek Ser Leang and Lee Sue Ann report that GBP/USD suffered a sharp slide to the low 1.33s after briefly trading above 1.3480. Intraday, they see scope for a test of 1.3300, though a sustained break below is doubtful.

Danske Research Team reports that EUR/USD fell sharply on Friday after a stronger-than-expected US jobs report boosted expectations for further Federal Reserve tightening. The move coincided with a rise in US Treasury yields and weaker risk sentiment.

EUR/USD rebounds after registering 0.75% losses in the previous day, trading around 1.1530 during the Asian hours on Monday. The daily chart technical analysis indicates an ongoing bearish bias as the pair is positioned near the lower boundary of the descending channel pattern.

The NZD/USD pair stages a modest recovery following an Asian session dip to the 0.5780 region, or a two-month low, as the US Dollar (USD) enters a bullish consolidation phase on Monday.

The GBP/USD pair trades with mild losses around 1.3340 during the European trading hours on Monday. Ongoing tensions in the Middle East and rising bets of a US interest rate hike provide some support to the US Dollar (USD) against the British Pound (GBP).