Brown Brothers Harriman expects the Reserve Bank of Australia to pause at 4.35% after three consecutive hikes and to remain data-dependent.

The USD/CAD pair trades in negative territory around 1.3975 during the early European trading hours on Monday. The US Dollar (USD) strengthens against the Canadian Dollar (CAD) after the US and Iran announce a peace deal to reopen the Strait of Hormuz. 

USD/JPY pares its daily gains, still remaining in the positive territory and trading around 160.10 during the Asian hours on Monday. The Japanese Yen (JPY) has found a solid foothold in the wake of the geopolitical breakthrough.

The New Zealand Dollar (NZD) resumes its immediate bullish trend and appreciates against the US Dollar on Monday. The NZD/USD pair trades near 10-day highs above 0.5850 at the time of writing, fuelled by an improved market sentiment, following a peace deal between the US and Iran.

The USD/CHF pair slumps to near 0.7930, the lowest since June 5, during the early European trading hours on Monday. The US Dollar (USD) weakens against the Swiss Franc (CHF) after the US and Iran announced a framework deal for peace.

The GBP/USD pair trades 0.35% higher to near 1.3460 during the late Asian trading session on Monday. The Cable extends its week-long advance as market sentiment improves further, following the announcement that the United States (US) and Iran have reached a deal.

The EUR/USD pair gains traction to near 1.1610 during the early European trading hours on Monday. The reports that the US and Iran have reached a deal to reopen the Strait of Hormuz improved risk sentiment, supporting the Euro (EUR) against the US Dollar (USD).

The Indian Rupee (INR) opens strongly against the US Dollar (USD) at the start of the week. The USD/INR pair plunges to near 94.60 as oil prices have nosedived, following the announcement that the United States (US) and Iran have reached a permanent peace deal.

AUD/USD gains around 0.5% after registering minor losses in the previous day, trading around 0.7080 during the Asian hours on Monday.

The AUD/JPY cross trades in positive territory around 113.35 during the early European session on Monday. The reports that the United States (US) had agreed to a peace deal with Iran provide some support to the riskier assets, such as the Australian Dollar (AUD) against the Japanese Yen (JPY).

NZD/USD gains ground after registering minor losses in the previous day, trading around 0.5850 during the Asian hours on Monday. The pair remains stronger as the New Zealand Dollar (NZD) holds ground following the release of domestic economic data.

The USD/JPY pair trades on a flat note near 160.20 during the Asian trading hours on Monday. The US Dollar (USD) softens against the Japanese Yen (JPY) after reports that the United States (US) had agreed to a peace deal with Iran.

USD/CAD depreciates after two days of gains, trading around 1.3970 during the Asian hours on Monday. The currency pair is under downward pressure as the US Dollar declines broadly, driven by a sharp reduction in market risk aversion.

South Korea Trade Balance increased to $27.04B in May from previous $26.94B

EUR/USD rises after registering minor losses in the previous day, trading around 1.1610 during the Asian hours on Monday.

The AUD/USD pair gathers strength to around 0.7075 during the early Asian session on Monday.

Societe Generale highlights that South Korean authorities have launched a multi-pronged FX stabilisation package to address short-term USD funding stress and speculative pressures on the Korean Won.

USD/CAD trades on the front foot on Friday as lower Oil prices weigh on the commodity-linked Canadian Dollar (CAD) amid cautious optimism that the United States (US) and Iran could reach an agreement that would reopen the Strait of Hormuz.

Scotiabank strategists Shaun Osborne and Eric Theoret report USD/JPY is steady but elevated, with recent gains already surpassing prior intervention-trigger levels. A 25 bps Bank of Japan (BoJ) hike on Tuesday is widely anticipated, and markets price nearly one more increase by December.

EUR/USD fluctuates between modest gains and losses heading into the weekend as traders await Tehran's decision on a possible agreement with the United States (US) to end the war in the Middle East. At the time of writing, the pair trades around 1.1573 and is on track to post modest weekly gains.

The USD/JPY pair trades near the 160.20 region on Friday as the Japanese Yen (JPY) remains slightly under pressure, while investors prepare for a key central bank week featuring the Bank of Japan's (BoJ) policy decision and Kevin Warsh’s first Federal Reserve (Fed) meeting as Chair.

The Pound Sterling turned negative on Friday against the US Dollar after data from the UK showed the economy contracted in April, while an agreement between the US and Iran improved risk appetite. Yet the Greenback erased its earlier losses and traded above its opening price.

EUR/GBP holds firm on Friday, with the Euro (EUR) modestly outperforming the British Pound (GBP) as weak UK Gross Domestic Product (GDP) data reinforced signs of a slowing economy. At the time of writing, the cross trades around 0.8633, up from an intraday low of 0.8625.

Scotiabank strategists Shaun Osborne and Eric Theoret observe that the Canadian Dollar (CAD) is weighed down by weaker Oil prices linked to Iran peace hopes, even as improved risk appetite offers some support.

NZD/USD trades around 0.5830 on Friday at the time of writing, down 0.15% on the day as the US Dollar (USD) maintains a firm tone following a series of strong US economic releases.

Brown Brothers Harriman’s Elias Haddad says GBP/USD has given back part of its US-Iran-related gains and is expected to fall to 1.3100 as United States (US) growth outpaces the United Kingdom (UK).

Commerzbank analysts Charlie Lay and Moses Lim argue that the Rupee remains vulnerable to external shocks, notably Middle East tensions, higher energy costs and El Nino-related risks.

USD/CAD trades higher around 1.3990 on Friday, with the US Dollar (USD) benefiting from stronger-than-expected inflation data in the United States (US), while the Canadian Dollar (CAD) remains weighed down by falling Oil prices and a Bank of Canada (BoC) that is showing little urgency to raise rates

Societe Generale strategists note Mexico still appears steady even as conditions become more challenging. Inflation has cooled to 3.94% in May, while Banxico has signalled an end to its easing cycle, leading markets to price potential hikes.

Nomura’s Global FX Strategy team, including Dominic Bunning and Yusuke Miyairi, argues that a more hawkish ECB path versus the Bank of England should support the Euro against the Pound.