Danske Research Team observes that equities fell on Friday, led by Europe, as renewed concerns around Iran and stalled talks weighed on sentiment and drove a defensive rotation.

Asian stocks kick off the new week on a downbeat note, though signs of progress in US-Iran pace negotiations eased concerns over a potential escalation in geopolitical tensions and limited deeper losses.

Netherlands, The Consumer Confidence Adj: -39 (June) vs -46

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, recovers its recent losses from the previous trading day and is hovering around 100.80 during the Asian hours on Monday.

AUD/JPY gains ground after posting minor losses in the previous day, trading around 113.30 during the Asian hours on Monday. The currency cross holds ground as the Australian Dollar (AUD) remains stronger following China’s latest monetary policy update.

The US-Iran peace talks took place on Sunday in Bürgenstock, Switzerland, with delegations from Iran, the United States, Qatar, and Pakistan participating.

China Finance Ministry said on Monday that officials to impose measures on 46 US firms in government procurement. The authorities further stated that they will add 10 US entities to export control list. 

Bank of Japan (BoJ) Deputy Governor Himino said on Monday that delaying adjustment in monetary easing could trigger a significant inflation overshoot. Himino emphasized that oil price pass-through to downstream goods is advancing fairly quickly. 

The People’s Bank of China (PBOC), China's central bank, announced to leave its Loan Prime Rates (LPRs) unchanged on Monday. The one-year and five-year LPRs were at 3.00% and 3.50%, respectively. 

China PBoC Interest Rate Decision meets expectations (3%)

Japan’s Finance Minister Satsuki Katayama said on Monday that the officials are ready to respond appropriately to the currency moves at any time as needed. Katayama declines to comment on specific exchange levels.

Citing a source with knowledge of the matter, Reuters reported on Monday that the United Kingdom (UK) Prime Minister (PM) Keir Starmer was reassessing his political future on Sunday after rival Andy Burnham's decisive parliamentary election victory prompted additional ministers from the governing La

Here’s a brief recap of the key developments in the US-Iran geopolitical front that occurred over the weekend, especially after Iran closed the Strait of Hormuz on Saturday over Israel's attacks on Lebanon, and amid renewed peace talks in Switzerland.

Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon.

Iran’s Foreign Ministry confirmed on Friday that a planned meeting in Switzerland with US officials had been postponed, adding that preparations are already underway for a new meeting in the coming days, Reuters reported.

Deutsche Bank’s Galina Pozdnyakova, Jim Reid and Luke Templeman highlight that next week’s main macro focus will be global flash PMIs and several key inflation releases.

Citing a senior US official on Friday, Reuters reported that Israel and Hezbollah have agreed to a ceasefire at 4 p.m. local time on Friday.

Russia Central Bank Reserves $: $729.3B vs previous $749.7B

Canada Retail Sales (MoM) below expectations (0.6%) in April: Actual (0.5%)

Canada Retail Sales ex Autos (MoM) below expectations (0.7%) in April: Actual (0.1%)

UOB Global Economics & Markets Research notes that USD/SGD closed at 1.2900, with the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) estimated at 1.75% above its mid-point.

ING strategists Francesco Pesole, Frantisek Taborsky and Chris Turner note that the Dollar has held post-Fed gains, keeping USD/JPY elevated in intervention territory.

MUFG’s Derek Halpenny says the Swiss Franc underperformed after the SNB left rates at zero, but only minor inflation forecast revisions underline expectations of persistently low Swiss inflation.

Rabobank’s Global Daily notes that the Bank of England kept rates unchanged in what policymakers call an “active hold,” effectively tightening policy versus pre‑war expectations for cuts.

Rabobank’s Global Daily stresses that unchanged rates in the UK and US contrast with recent hikes by the ECB and Bank of Japan, but argues this is less divergence than it appears.

Greece Current Account (YoY) rose from previous €-2.344B to €-1.389B in April

Here is what you need to know on Friday, June 23:

GBP/USD remains subdued for the third successive day, trading around 1.3190 during the early European hours on Friday. The British Pound (GBP) pares its daily losses against the US Dollar (USD) but remains in negative territory following the release of key economic data from the United Kingdom (UK).

European Central Bank (ECB) policymaker and the head of Belgium's central bank, Pierre Wunsch, said on Friday that the central bank may cut the interest rates when the dynamics turn.

Retail Sales, a key measure of consumer spending, in the United Kingdom (UK) climbed 1.2% month-over-month (MoM) in May after falling by a revised 1.0% in April, the latest data published by the Office for National Statistics (ONS) showed on Friday.