UOB’s Jester Koh notes that Singapore’s 1Q26 GDP was sharply revised higher and that MTI kept its 2026 growth forecast at 2.0–4.0%. The bank raises its 2026 GDP forecast to 3.2%, citing sustained AI-related demand and strong electronics indicators.

Mexico Accumulated Current Account/GDP down to -3.1% in 1Q from previous 1.55%

Mexico Current Account, $ (QoQ) dipped from previous $7702M to $-15878M in 1Q

Brown Brothers Harriman’s (BBH) Elias Haddad expects the Bank of Korea (BoK) to hold its policy rate at 2.50%, but warns of a hawkish surprise aimed at curbing Korean Won (KRW) weakness.

HSBC Asset Management spotlights Asia’s small-cap stocks as a strong performer over the past five years, outperforming regional large caps with lower volatility and better sector diversification.

TD Securities economists, led by Robert Both, expect the Bank of Canada to keep the overnight rate at 2.25% through 2026 before lifting it back to a 2.75% neutral level in 2027.

In a post published on Truth Social on Monday, United States (US) President Donald Trump noted that negotiations with the Islamic Republic of Iran are proceeding nicely.

UOB’s Quek Ser Leang and Lee Sue Ann expect USD/SGD to edge lower and test 1.2760 in the near term, though a sustained break below that level is unlikely. They maintain a 1–3 week range-trading view between 1.2730 and 1.2820, with major support at 1.2730 seen as intact.

Mexico Trade Balance s/a, $: $3.351B (April) vs $2.499B

Mexico Trade Balance, $ dipped from previous $5.932B to $4.52B in April

DBS Group Research economist Chua Han Teng assesses Singapore’s economic outlook as resilient but increasingly tested by Middle East tensions and energy risks. The bank highlights strong 1Q26 GDP data, robust AI-driven exports, and solid services and construction activity.

Brown Brothers Harriman’s (BBH) Elias Haddad expects the National Bank of Hungary (MNB) to keep its policy rate at 6.25% for a third straight meeting.

HSBC Asset Management discusses how rising global bond yields, including higher US 10-year Treasuries, are affecting global equities. The report argues that current yield moves are still consistent with an environment stocks can tolerate, as real yields remain low and profit growth is strong.

According to Iran's official news agency, Iranian central bank chief travels to Qatar after Qatari delegation visited Tehran regarding frozen funds.

United States (US) President Donald Trump said in a post on Truth Social during the European trading session on Monday that the deal with Iran will “either be a great and meaningful one, or there will be no deal”.

EUR/CAD extends its winning streak for the fourth consecutive day, trading around 1.6080 during the European hours on Monday.

Japan Prime Minister (PM) Sanae Takaichi said during the European trading session on Monday that the potential new debt to compensate for higher household utility and gas bills won’t impact bond markets, as it will be offset higher tax and other revenue sources.

Here is what you need to know on Monday, May 25:

Commerzbank analysts highlight that USD/INR fell 0.5% to 95.71 and is down 0.3% on the week, as the Reserve Bank of India (RBI) intervenes in spot markets and tightens gold import rules.

Philip Wee at DBS highlights uncertainty around new Fed Chair Kevin Warsh’s approach, noting President Trump’s preference for lower rates and Warsh’s reform-oriented stance.

According to the Iranian Student News Agency (ISNA), a senior Iranian diplomat said that the nuclear issue and highly enriched uranium reserves will be discussed with the United States (US) in 60-day negotiations in exchange for the lifting of sanctions and unfreezing of assets.

European Central Bank (ECB) policy governing council member and Governor of the Bank of Greece, Yannis Stournaras said during the European trading session on Monday that the closure of the Strait of Hormuz, a critical passage to almost 20% of global energy supply, may have secondary effects on wages

Turkey Economic Confidence Index increased to 97.2 in April from previous 96.4

Commerzbank’s FX Research team, including Charlie Lay and Dr. Henry Hao, notes that Brent Oil has been volatile as markets react to prospects of a US-Iran agreement and the continued closure of the Strait of Hormuz.

The Indian Rupee (INR) opens on a strong note against the US Dollar (USD) at the start of the week. The USD/INR pair extends its losing streak for the fourth trading day on Monday, sliding to near 95.20, the lowest level seen in almost two weeks.

USD/JPY gains ground after opening at a bearish gap, remaining in the negative territory and trading around 158.90 during the Asian hours on Monday. The pair maintains its downward momentum as the Japanese Yen (JPY) gains support from falling oil prices.

US Secretary of State Marco Rubio said that the US will give diplomacy every chance with Iran but will pursue other means if a good deal cannot be reached, while describing the current framework as solid, Reuters reported on Monday.

Singapore Consumer Price Index (YoY) came in at 1.8 below forecasts (2) in April

Gold prices rose in India on Monday, according to data compiled by FXStreet.

Most Asian stocks rally broadly at the start of a new week as developments over the weekend fuel hopes for a potential deal to end a nearly three-month-long Iran war and boost investors' appetite for riskier assets.