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.

The Euro (EUR) has retraced previous losses against the US Dollar (USD) following a weak weekly opening, as rising tensions between the US and Iran have curbed hopes of a swift resolution of the conflict.

EUR/JPY gains ground after registering modest losses in the previous trading day, hovering around 187.00 during the European hours on Monday.

UOB economists Quek Ser Leang and Lee Sue Ann report that AUD/USD surged to 0.7220 before reversing sharply and opening lower, with the latest drop seen as excessive but not yet complete.

The Australian Dollar (AUD) recovers previous losses against the US Dollar (USD) on Monday, amid tensions in the Strait of Hormuz between Iran and the US that cast doubt on the ceasefire's fate.

The GBP/USD pair builds on its modest intraday recovery from a one-week low and climbs back above the 1.3500 psychological mark during the early European session on Monday.

The GBP/JPY pair trades higher to near 214.60 during the European trading session on Monday. The pair gains as the Japanese Yen (JPY) underperforms its peers amid uncertainty surrounding the Bank of Japan’s (BoJ) interest rate decision, which will be announced on April 28.

USD/CHF inches higher after registering modest losses in the previous trading day, hovering around 0.7820 during the early European hours on Monday.

The NZD/USD pair attracts some sellers to around 0.5865 during the early European session on Monday. The New Zealand Dollar (NZD) softens against the US Dollar (USD) amid heightened tensions between the United States (US) and Iran and the re-closing of the Strait of Hormuz. 

the Bank of England with some margin

MUFG’s Teppei Ino reviews Japanese Yen's (JPY) performans, with noting the USD/JPY pair briefly tested 159.86 before retreating on shifting risk sentiment.

Germany Producer Price Index (MoM) above forecasts (1.4%) in March: Actual (2.5%)

Germany Producer Price Index (YoY) increased to -0.2% in March from previous -3.3%

The AUD/JPY cross loses ground near 113.65 during the early European session on Monday. Renewed tensions between the United States (US) and Iran provide some support to a safe-haven currency such as the Japanese Yen (JPY) against the Aussie.

The USD/CAD pair holds its Friday’s recovery move around 1.3700 during the late Asian trading session on Monday.

The Indian Rupee (INR) opens lower against the US Dollar (USD) at the start of the week. The USD/INR jumps to near 92.80 as renewed tensions between the United States (US) and Iran have lifted the oil prices and offered support to the US Dollar (USD).

The EUR/USD pair attracts fresh buyers near the 1.1730-1.1725 region, or a one-week-old touched during the Asian session, and fills a major part of its bearish gap on Monday.

GBP/USD pares its recent losses after opening at a gap down, still trading lower around 1.3500 during the Asian hours on Monday. The pair faced challenges as the US Dollar (USD) drew support from heightened safe-haven demand amid re-escalating United States (US)–Iran tensions.

The USD/JPY pair trades in positive territory around 159.00 during the early European session on Monday. Renewed conflict between the United States (US) and Iran, and the closure of the Strait of Hormuz weigh on the Japanese Yen (JPY) against the US Dollar (USD). 

EUR/JPY gains ground after registering nearly 0.5% losses the previous trading day, hovering around 186.80 during Asian hours on Monday. The technical analysis of the daily chart indicates the currency cross is trending higher within an ascending channel, signaling a persistent bullish bias.