Silver price (XAG/USD) depreciates after registering modest gains in the previous day, trading around $50.30 per troy ounce during Asian hours on Tuesday.

The USD/JPY pair struggles to capitalize on the previous day's positive move, consolidating below the 158.00 mark during the Asian session on Tuesday amid mixed fundamental cues.

The EUR/USD pair trades with a mild negative bias during the Asian session on Tuesday, looking to extend the previous day's modest pullback from the 1.1235 area, or a one-and-a-half-week top.

The GBP/USD pair loses ground to near 1.3405, snapping the four-day winning streak during the early Asian trading hours on Tuesday.

USD/CAD inches lower after posting modest gains in the previous day, trading around 1.3990 during Asian hours on Tuesday. The currency pair is experiencing downward pressure as the Canadian Dollar (CAD) receives support from a modest recovery in crude oil prices.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Tuesday at 6.7150 compared to the previous day's fix of 6.7146 and 6.6489 Reuters estimate.

The Reserve Bank of Australia (RBA) will announce its monetary policy decision on Tuesday and is widely anticipated to raise the Official Cash Rate (OCR) by 25 basis points (bps) to 4.85% from 4.6%.

The Australian Dollar began the week on a lower note against the US Dollar, at around 0.7000, as depicted in the AUD/USD daily chart, as investors brace for the Reserve Bank of Australia (RBA) monetary policy decision following optimistic US economic data.

The Dollar fell against the Euro and the Pound on US-Iran diplomacy but not against the Yen, and USD/JPY reached 158.00, its highest since October 29. It dipped to just above 157.50 when the Dollar's slide elsewhere was at its deepest, then climbed to the high. It's trading just under 158.00.

The Reserve Bank of New Zealand (RBNZ) still has its rate at 2.75%, and NZD/USD has given back all of its climb on a weaker Dollar. It climbed off a session low just above 0.5600 to just under 0.5650 as the Dollar fell with Crude Oil on US-Iran diplomacy.

About half of the Euro's climb on a weaker Dollar has already gone. EUR/USD rose from a session low just above 1.1150 to just under 1.1250, its highest since October 22, before falling back to just under 1.1200. It went through Friday's high on the way up and is trading back inside Friday's range.

Crude Oil has fallen on hopes for a US-Iran deal, and the Dollar has fallen with it, which has put GBP/USD at its highest since mid-September. The pair climbed to just under 1.3450, then gave back about two-thirds of the climb from its session low.

The Mexican Peso (MXN) stages a comeback against the US Dollar (USD) as the week begins, following last Friday's strong GDP figures. At the same time, traders brace for the outcome of the US elections on Tuesday, even as they digest the latest ISM Manufacturing PMI report.

USD/CAD trades in a choppy range on Monday as a softer US Dollar (USD) and falling Oil prices pull the pair in opposite directions. At the time of writing, the pair trades around 1.3975 after touching 1.3941 on Friday, its lowest level since September 16.

OCBC strategists Sim Moh Siong and Christopher Wong project USD/KRW at 1320 by end-2026 and 1260 by end-2027, implying a moderate Korean Won (KRW) appreciation path that is unlikely to be linear.

EUR/USD trades with a bullish bias on Monday but lacks upside momentum as the US Dollar (USD) trims part of its earlier decline, while traders assess fresh Middle East headlines that sent Oil prices tumbling.

The Pound Sterling rises some 0.26% against the US Dollar on Monday, beginning the eleventh month of the year with an upbeat note as the economy in the US remains strong following the release of the ISM Manufacturing PMI for October. The GBP/USD trades at 1.3423 at the time of writing.

Silver (XAG/USD) attempts a rebound on Monday after sliding to a fresh yearly low of $48.47 on Friday. The recovery comes as Oil prices tumble more than 5% following positive diplomatic signals from both the US and Iran. At the time of writing, XAG/USD trades around $51, up 3.80% on the day.

HSBC strategists describes how President Lula’s unexpected re-election has triggered a sharp repricing in Brazilian assets and notable Brazilian Real losses against the US Dollar. Opposition gains suggest legislative gridlock and an elevated fiscal risk premium.

AUD/USD trades on the back foot on Monday as the Australian Dollar (AUD) underperforms all its major peers. Traders are likely trimming exposure before the Reserve Bank of Australia’s (RBA) monetary policy announcement on Tuesday, weighing on the Aussie despite a softer US Dollar (USD).

Rabobank's Senior FX Strategist Jane Foley notes that the Reserve Bank of New Zealand's (RBNZ) unexpected decision to keep rates unchanged surprised markets positioned for a hike.

The Euro (EUR) holds a positive tone against the US Dollar (USD) on Monday, favoured by positive Eurozone factory activity data and concerns about US elections.

OCBC strategists Sim Moh Siong and Christopher Wong expect the US Dollar (USD) to stay broadly supported into 1H27, with EUR/USD potentially dipping below 1.10 as AI-related uncertainty and elevated energy prices sustain US growth and inflation premia.

ING’s Chris Turner says Sterling is trading relatively well as markets fully price a 25bp Bank of England (BoE) rate hike to 4.00% on Thursday.

Rabobank expects the Reserve Bank of Australia (RBA) to raise interest rates at its upcoming meeting, supported by stronger-than-expected inflation data and hawkish policymaker comments.

GBP/JPY edges higher on Monday as the Japanese Yen (JPY) struggles despite the Bank of Japan’s (BoJ) hawkish signals.

Chris Turner at ING highlights Fitch’s unscheduled shift of France’s sovereign outlook to negative, which may weigh on French bonds and the Euro (EUR).

The Euro (EUR) shows a significant recovery against the British Pound (GBP) on Monday, supported by the reversal in Oil prices and positive Eurozone manufacturing activity figures.

The New Zealand Dollar (NZD) trades lower against the US Dollar (USD) at around 0.5620 during the European trading session on Monday.

The British Pound (GBP) holds moderate gains against the US Dollar (USD) on Monday but has eased from the two-week highs hit earlier in the day, despite the confirmation of solid UK manufacturing activity in October.