The Aussie Dollar appreciates for the second consecutive day against a softer US Dollar, approaching the top of February’s trading channel at the 0.7050 area.

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling (GBP) may weaken amid a fresh government crisis in the United Kingdom (UK).

The Euro (EUR) has opened the week on a strong note against the US Dollar (USD), edging higher and trading above 1.1850 at the time of writing on Monday.

TD Securities Senior Macro Strategist Alex Loo argues that despite Japan’s political shift under PM Takaichi, the Japanese Yen is likely to underperform, with markets eyeing the 160 level in USD/JPY as a key trigger for Ministry of Finance action.

USD/CHF extends its losses for the second successive session, trading around 0.7730 during the European hours on Monday. Traders are looking for fresh signals on the Swiss National Bank’s (SNB) monetary policy outlook.

The Pound retraces previous gains as a landslide victory by Japan’s Prime Minister Sanae Takaichi onSunday’s elections has sent the Yen rallying against its main peers on Monday. The GBP/JPY has given away nearly 200 pips from session highs at 214.41 to 212.61 at the time of writing.

NZD/USD extends its gains for the second successive session, trading around 0.6020 during the European hours on Monday. The pair appreciates as the US Dollar (USD) declines, as traders adopt caution ahead of looming key economic data delayed by the partial government shutdown.

DBS Group Research’s Philip Wee analyses how Japan’s snap election and the so‑called Takaichi Trade could shift expectations for USD/JPY. He notes that the Liberal Democratic Party–Inshin landslide may support the Japanese Yen, while markets may be overstating Japanese Government Bond risks.

Here is what you need to know on Monday, February 9:

The EUR/JPY cross loses traction to near 185.55 during the early European session on Monday. The Japanese Yen (JPY) strengthens against the Euro (EUR) after Japan’s ruling Liberal Democratic Party (LDP) won an outright majority in Sunday’s lower house election.

UOB analysts Quek Ser Leang and Lee Sue Ann suggest that the Euro against the US Dollar is facing mild upward pressure and could test higher levels. The report indicates a potential advance to 1.1840, although the resistance at 1.1860 is unlikely to be breached.

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s (BoE) interest-rate cut weighs on the Pound Sterling (GBP) against the Greenback. 

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index (RSI) momentum indicator at 54 (neutral) is edging higher, signaling improving momentum.

The USD/CAD pair posts modest gains around 1.3660 during the early European session on Monday. Traders weigh mixed Canadian January employment data. Key US labor market data will be the highlight later on Wednesday. 

USD/INR depreciates as the Indian Rupee (INR) finds support from the United States (US)–India interim trade framework. New Delhi and Washington on Friday unveiled an interim framework aimed at lowering tariffs, reshaping energy ties, and deepening economic cooperation.

The Japanese Yen (JPY) kicked off the new week on a weaker note as Prime Minister Sanae Takaichi's landslide win in Sunday's election paves the way for further fiscal stimulus.

The NZD/USD pair trades in negative territory near 0.6015 during the Asian trading hours on Monday. The New Zealand Dollar (NZD) edges lower against the US Dollar (USD) as softer labor data pushes out expectations for the Reserve Bank of New Zealand (RBNZ) tightening. 

Silver price (XAG/USD) gains ground for the second successive session, trading around $80.80 per troy ounce during the Asian hours on Monday.

Senior Currency Analyst Michael Wan highlights a surprise US–India trade deal cutting tariffs to 18% from 50%, which he views as INR-positive in the near term.

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling (GBP) softens against the Greenback amid growing expectations of the Bank of England’s (BoE) interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

On Monday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.9523 compared to Friday's fix of 6.9590 and 6.9334 Reuters estimate.

AUD/USD extends its gains for the second successive session, trading around 0.7020 during the Asian hours on Monday.

The EUR/USD pair is seen building on Friday's goodish rebound from the 1.1765 region or a two-week low and gaining positive traction for the second straight day at the start of a new week.

The USD/JPY pair attracts some buyers to around 157.45 during the early Asian session on Monday.

The Euro found some respite on Friday versus its counterpart the Greenback, which enjoyed a short-live rally of just two days, but erased Thursday’s gains on Friday as depicted by the US Dollar Index (DXY).

The Canadian Dollar (CAD) climbed sharply on Friday, adding half a percent against the US Dollar (USD) after January labor market data showed the unemployment rate dropping to 6.5%, its lowest reading since September 2024.

Brown Brothers Harriman (BBH) analysts note the Reserve Bank of India kept its policy rate at 5.25% after earlier cuts and signaled an end to easing while retaining a neutral stance. Despite swaps pricing in future hikes, Governor Malhotra stressed steady rates over the next year.

MUFG Bank analysts Lin Li, Michael Wan, and Lloyd Chan note that Japan’s 8 February election is reinforcing weakness in the Japanese Yen, with USD/JPY drifting back toward 160 after a brief correction.

The Pound Sterling recovers on Friday, up by 0.60% as the Greenback makes a U-turn erasing Thursday’s losses amid a risk-on mood. At the time of writing, the GBP/USD trades at 1.3604 yet poised to finish the week with a 0.56% loss.

AUD/USD rebounds on Friday and trades around 0.6995 at the time of writing, up 0.73% on the day.