Pound Sterling is supposed to be the high-carry name in the G7, and for most of this year that logic held.

There is a strange disconnect running through the Japanese Yen right now, and USD/JPY parked just above 160.00 captures it perfectly.

The Australian Dollar spent Monday trying to talk itself into a recovery, and the tape was not buying it.

The GBP/JPY trims some of its earlier losses, turns nearly flat during the day at around 213.60, and is modestly down 0.09% amid a mixed market mood, an indication of cautious trading amid the ongoing environment.

The USD/CHF advances some 0.30% on Monday, as an inverted ‘head-and-shoulders’ chart pattern is confirmed, along with price action leaving the 200-day Simple Moving Average (SMA) below the current spot price. The pair trades near 0.7981.

BNY’s Bob Savage highlights that South Korean policymakers held an emergency meeting and vowed stern action against speculative FX activity as USD/KRW trades at its weakest since 2009. The National Pension Service has resumed forward FX selling under a higher hedge ratio framework.

USD/CAD trades in a narrow range on Monday, with the Canadian Dollar (CAD) struggling to capitalize on a softer US Dollar (USD) as a mild pullback in Crude Oil prices weighs on the commodity-linked Loonie. At the time of writing, the pair trades around 1.3950, holding near two-month highs.

The Pound Sterling registers modest gains of 0.10% on Monday as risk appetite improved despite attacks exchanged between Iran and Israel, which agreed to halt fire as US President Donald Trump demanded the end of shooting, to resume talks between Washington and Tehran.

The EUR/USD pair trades near 1.1540 on Monday as investors assess mixed Eurozone sentiment data and position ahead of the European Central Bank's (ECB) highly anticipated interest rate decision later this week.

USD/JPY holds firm on Monday as traders track rapidly changing headlines from the Middle East. Lingering concerns about another intervention by Japanese authorities also limit the pair's upside as the Japanese Yen (JPY) once again tests the 160.00 level against the US Dollar (USD).

OCBC’s Sim Moh Siong expects the European Central Bank (ECB) to deliver a one-off 25 bp ‘insurance’ hike to 2.25%, with updated projections showing higher inflation and weaker growth.

AUD/USD trades around 0.7070 at the time of writing on Monday, up 0.33% on the day, after touching a low near 0.7024, its weakest level in nearly two months.

UOB’s Quek Ser Leang and Lee Sue Ann note that EUR/USD plunged to a three‑month low around 1.1520 after breaking several key supports.

Brown Brothers Harriman’s Elias Haddad (BBH) highlights downside risks for the Pound as UK GDP is expected to contract in Q2 and markets price further Bank of England (BoE) hikes due to second-round inflation effects.

The Euro (EUR) turned positive against the US Dollar (USD) in the daily charts heading into the US session opening on Monday as the EUR/USD bounced to 1.1540 after hitting three-month lows at 1.1499.

NZD/USD trades around 0.5830 on Monday at the time of writing, up 0.62% on the day after rebounding from a two-month low touched during the Asian session.

Rabobank strategists Molly Schwartz and Jane Foley report that Canadian Dollar (CAD) net short positions have surged about 36% to their highest level since December 2025.

The US Dollar is rallying for the second consecutive day against the Swiss Franc (CHF) on Monday, reaching levels near 0.8000 for the first time in the last two months.

EUR/JPY trades around 184.10 on Monday at the time of writing, down 0.32% on the day, as the Japanese Yen (JPY) continues to benefit from a favorable backdrop driven by expectations of higher interest rates in Japan and renewed warnings from Japanese authorities regarding currency weakness.

Brown Brothers Harriman’s Elias Haddad (BBH) expects the Bank of Canada to keep its policy rate at 2.25% and maintain two-way optionality, as contained inflation allows an extended pause.

UOB’s Quek Ser Leang and Lee Sue Ann flag that AUD/USD posted its second-largest one‑day loss of the year, dropping toward 0.7040. Near term, the pair may test 0.7020, though a sustained break below is seen as unlikely.

The Euro (EUR) consolidates losses against the US Dollar (USD) on Monday, trading at 1.1515 at the time of writing, following a 0.75% sell-off on Friday.

Societe Generale analysts say USD/JPY has rebounded after defending a multi‑month ascending trend line around 155.50/155.00 and is now challenging the April high. Support is seen at 159.20, with projections at 161.20 and 162.

Eurozone Sentix Investor Confidence: -13.4 (June) vs -16.4

Silver price (XAG/USD) extends its losses for the second successive day, trading around $67.00 per troy ounce during the European hours on Monday.

The GBP/USD pair trades marginally lower to near 1.3338 during the European trading session on Monday. The pair posts a fresh almost three-week low near 1.3316 in the day, as the US Dollar (USD) outperforms amid growing expectations that the Federal Reserve (Fed) will raise interest rates this year.

ING’s Chris Turner notes EUR/USD was hit hard as the Dollar surged, increasing pressure on the European Central Bank to sound hawkish while delivering a 25bp hike to 2.25%.

The GBP/JPY cross stages a modest recovery from over a one-week low, around the 213.30 region touched earlier this Monday, and sticks to modest intraday gains through the first half of the European session.

The Euro (EUR) has turned lower against the British Pound (GBP) on Monday, although it remains moving within Friday's range. The pair retreated from session highs near 0.8650 and trades at 0.8637 at the time of writing, as downbeat German Factory Orders have set the Euro under renewed pressure.

UOB’s Quek Ser Leang and Lee Sue Ann note USD/JPY held above 160.00 and closed modestly higher around 160.25. Intraday, mild upward momentum points to a move toward 160.50, with major resistance at 160.75 unlikely to be threatened immediately.