A hot inflation print and a rebound in Crude Oil ought to be a recipe for a stronger commodity currency, which makes the Canadian Dollar's slide to fresh 14-month lows all the more telling.

There is something faintly absurd about a currency pair holding this high while one half of it represents a country that has just lost its prime minister. GBP/JPY settled Monday close to 214.00, sitting on its rising 50-day average after a pullback from this month's peak near 216.50.

NZD/USD trades in negative territory around 0.5730 on Monday, extending its retreat for the fourth consecutive day. The pair hit its lowest level since April 8, against a backdrop of broad US Dollar (USD) strength and persistent uncertainty surrounding the US-Iran peace process.

The AUD/USD pair fell near the 0.700 area on Monday, struggling to extend gains as investors remain cautious ahead of the upcoming US Personal Consumption Expenditures Price Index (PCE), the Federal Reserve’s (Fed) preferred inflation gauge.

EUR/USD trades under pressure on Monday, extending losses from the previous week as expectations of a hawkish Federal Reserve (Fed) underpin the US Dollar (USD), even as easing tensions in the Middle East curb safe-haven demand for the Greenback.

The Pound Sterling advances some 0.14% on Monday as the US-Iran negotiations laid a “good foundation” according to US Vice President JD Vance, after ending the first round of talks in Switzerland.

The USD/JPY pair sank as low as 161.07 on Monday, retreating from highs near 161.90 as traders remain alert to possible Japanese intervention after the pair moved close to a four-decade high.

Nomura’s Dominic Bunning highlights that British Pound (GBP) has reacted calmly to Keir Starmer’s resignation, with investors focusing on the prospect of Andy Burnham becoming Prime Minister and his choice of Chancellor.

Deutsche Bank’s Shreyas Gopal notes that markets had largely anticipated Andy Burnham becoming UK Prime Minister by the Autumn Budget, leaving the risk premium in Sterling broadly unchanged.

Royal Bank of Canada (RBC) economist Abbey Xu notes that Canadian inflation rose to 3.2% year-over-year in May, mainly due to higher energy prices, airfares and food costs.

USD/CAD trades little changed on Monday after a brief bout of weakness following stronger-than-expected Canadian inflation data. At the time of writing, the pair is trading around 1.4165, hovering near its highest level since April 2025.

Societe Generale’s Kit Juckes notes that UK political change is generating only modest Sterling (GBP) weakness, with EUR/GBP seen one to two percentage points higher and GBP/USD likely to test 1.30 this summer.

Rabobank’s Senior Macro Strategist Teeuwe Mevissen notes that divergence between the Federal Reserve (Fed) and European Central Bank (ECB) is becoming more important for EUR/USD.

Societe Generale strategists expect the central bank of Mexico, Banxico to hold rates at 6.50% on Thursday, with the statement potentially challenging market pricing for 80bp of tightening over 12 months.

The British Pound (GBP) is. showing the strongest performance among the major currencies on Monday, rallying 0.3% against the Japanese Yen, 0.14% against the Euro, and ticking up 0.05% against the Dollar after reversing previous losses.

ING’s Francesco Pesole sees a decent risk that EUR/USD will need to test 1.140 as lingering post-Fed Dollar momentum plays out before any renewed upward pattern.

The Canadian Dollar (CAD) trades lower against its major currency peers during the European trading session on Monday, ahead of the Consumer Price Index (CPI) data for May, which will be published at 12:30 GMT.

USD/JPY advances toward 161.70 on Monday, gaining around 0.25% at the time of writing, as the US Dollar (USD) benefits from both renewed risk aversion linked to geopolitical tensions in the Middle East and stronger expectations for tighter monetary policy in the United States (US).

The Australian Dollar (AUD) trades slightly lower at around 0.7003 against the US Dollar (USD) during the European trading session on Monday.

The British Pound (GBP) accelerates its recovery against the Japanese Yen (JPY)  on Monday to test levels above 214.00 at the time of writing. The Sterling is being boosted across the board, as investors welcome the decision of the United Kingdom Prime Minister, Keir Starmer, to step down.

EUR/GBP comes under pressure on Monday as markets react positively to UK Prime Minister Keir Starmer's resignation, with the British Pound (GBP) outperforming most of its major peers.

OCBC strategists Sim Moh Siong and Christopher Wong note that the Bank of Japan’s (BoJ) 25 bp hike to 1.0% and confirmation of tapering ending in 2027 have not materially supported the Japanese Yen (JPY).

EUR/JPY advances toward 185.30 on Monday, gaining 0.16% at the time of writing, as markets prepare for the release of the Eurozone’s preliminary HCOB Purchasing Managers Index (PMI) data and closely watch speeches from the President of the European Central Bank (ECB).

The British Pound (GBP) nudged up above 1.3200 against the  US Dollar (USD) on Monday and maintains a mild positive tone, despite news that Sir Keir Starmer resigned as Prime Minister of the United Kingdom and Leader of the Labour Party.

The NZD/USD pair drifts lower for the fourth consecutive day – also marking the sixth day of a negative move in the previous seven – and drops to its lowest level since April 8 during the first half of the European session on Monday.

Societe Generale highlights that USD/CAD has accelerated higher after breaking a descending trend line in place since last year, signalling a momentum shift and an attempted breakout from a broad multi-month range.

The Australian Dollar (AUD) extends losses against the US Dollar (USD) for the fifth consecutive day on Monday, trading just below the psychological 0.7000 level and drifting towards the 11-week low of 0.6979.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann keep a negative stance on AUD/USD after a period of quiet price action around 0.7020.

The Euro (EUR) trades 0.23% lower against the US Dollar (USD) at around 1.1444 during the European trading session on Monday.

The US Dollar (USD) keeps marching higher against the Swiss Franc (CHF)  on Monday, trading at year-to-date highs around 0.8085 at the time of writing and starting to look overstretched after having rallied nearly 2% over the last four trading days.The US Dollar is drawing support from monetary poli