EUR/GBP trades around 0.8680 on Monday at the time of writing, virtually unchanged on the day. Price action remains limited as investors adopt a cautious stance amid rising geopolitical tensions in the Middle East and ahead of key inflation data from Germany.

HSBC analysts argue the Canadian Dollar (CAD) has outperformed most G10 peers during the Middle East conflict but now appears to be losing momentum.

Eurozone Economic Sentiment Indicator above forecasts (96.5) in March: Actual (96.6)

Eurozone Industrial Confidence came in at -7, above expectations (-9) in March

Eurozone Services Sentiment registered at 4.9 above expectations (4) in March

The Pound (GBP) accelerated its downtrend against the Japanese Yen (JPY) on Monday.

USD/CAD continues its winning streak for the sixth successive day, trading around 1.3920 during the European hours on Monday. The pair gains ground as the US Dollar (USD) regains its ground amid increased safe-haven demand on rising doubts over a resolution to the Iran war.

Societe Generale analysts highlight that USD/JPY has reclaimed its 50‑DMA and is breaking above its multi‑year range, pointing to further upside toward 162.00 and the 163.20/163.70 channel top.

Germany Baden-Wuerttemberg CPI (MoM) up to 0.9% in March from previous 0.2%

Germany Baden-Wuerttemberg CPI (YoY) increased to 2.5% in March from previous 1.8%

Germany Hesse CPI (YoY) increased to 2.9% in March from previous 2.2%

Germany Hesse CPI (MoM) increased to 1.1% in March from previous 0.4%

Germany Saxony CPI (MoM) up to 1.1% in March from previous 0.3%

Germany Saxony CPI (YoY) increased to 2.8% in March from previous 2.3%

Germany Brandenburg CPI (YoY) climbed from previous 2% to 2.8% in March

Germany Brandenburg CPI (MoM) increased to 1.1% in March from previous 0.4%

Germany Bavaria CPI (YoY) rose from previous 1.9% to 2.8% in March

Germany Bavaria CPI (MoM) up to 1.2% in March from previous 0.2%

BNY’s Bob Savage argues that Eurozone stagflation risks are building as energy pressures rise, with headline CPI pushed higher by fuel while core remains contained.

EUR/JPY depreciates after registering modest gains in the previous trading day, hovering around 183.60 during the European hours on Monday.

Commerzbank’s Charlie Lay explains that the Reserve Bank of India (RBI) has capped banks’ net open Indian Rupee (INR) positions at USD 100 million per day to curb speculation and volatility.

The Aussie Dollar (AUD) is trimming losses against the US Dollar (USD) on Monday. The pair bounced from two-month lows around 0.6840 but is struggling to rise above 0.6870, as negative market sentiment keeps weighing on any significant Aussie recovery.

Here is what you need to know on Monday, March 30:

Deutsche Bank analysts note the Japanese Yen (JPY) has strengthened modestly against the US Dollar (USD) as officials flag speculative FX activity and warn that decisive action may soon be necessary.

The NZD/USD pair claws back its early losses and flattens around 0.5745 during the early European trading session on Monday. The Kiwi pair bounces back from its over two-month low of 0.5725, the lowest low seen in over two months.

USD/CHF continues its winning streak for the fifth successive day, trading around a two-month high of 0.8000 during the early European hours on Monday.

The Euro (EUR) consolidates last week's losses near 1.1500 on Monday, with the US Dollar favoured by a dismal market sentiment. Investors are coming to terms with the Idea of a protracted war in the Middle East, with high Oil prices posing significant challenges for the crude oil-importing Eurozone

Commerzbank’s Thu Lan Nguyen notes that recent Euro strength against the Dollar reflects expectations that the ECB will react more quickly to the latest inflation shock than in 2022. Higher Oil and gas prices are seen feeding into Euro area inflation, with German data key.

The USD/CAD pair posts a fresh two-month high at 1.3900 in the Asian trading session on Monday. The Loonie pair extends its five-day-long advance as the US Dollar (USD) trades firmly amid strong demand for safe-haven assets.

The Indian Rupee (INR) bounces back against the US Dollar (USD) in the opening trade at the start of the week, following the Reserve Bank of India’s (RBI) introduction of new limits on banks’ foreign-exchange exposure, which pushes the USD/INR pair lower by over 1% to near 94.00.