The GBP/USD pair is up 0.35% to near 1.3480 during the Asian trading session on Monday. The Cable trades firmly as market sentiment for riskier assets has improved significantly due to increased hopes of a deal between the United States (US) and Iran.

The USD/JPY pair edges lower to around 158.85, snapping the two-day winning streak during the Asian trading hours on Monday. The US Dollar (USD) weakens against the Japanese Yen (JPY) amid signs of a US-Iran deal to reopen the Strait of Hormuz. 

USD/CHF extends its losing streak for the fourth consecutive day, trading around 0.7820 during the Asian hours on Monday.

The EUR/USD pair opens with a bullish gap at the start of a new week as renewed optimism over a potential US-Iran peace deal weighs heavily on the safe-haven US Dollar (USD).

EUR/JPY extends its gains for the second successive day, trading around 184.90 during the Asian hours on Monday.

On Monday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.8318 compared to Friday's fix of 6.8373 and 6.7880 Reuters estimate.

The AUD/USD pair opens with a modest bullish gap at the start of a new week and sticks to intraday gains above mid-0.7100s through the Asian session.

The GBP/USD pair gains traction to near 1.3480 during the early Asian session on Monday. The US Dollar (USD) weakens against the British Pound (GBP) as the United States (US) and Iran signal peace progress. Trading volumes are expected to be light due to a market closure for Memorial Day in the US. 

Silver price (XAG/USD) rises nearly 4% after registering losses in the previous day, trading around $78.50 per troy ounce during the Asian hours on Monday.

The USD/CAD pair kicks off the new week on a weaker note, eroding a part of Friday's strong gains to the 1.3825 region, or the highest level since April 13. Spot prices, however, lack follow-through selling and stabilize around the 1.3800 round figure amid mixed cues.

The USD/JPY pair declines to near 158.90 during the early Asian session on Monday. Progress in talks between the United States (US) and Iran to bring an end to the Middle East conflict drags the US Dollar (USD) against the Japanese Yen (JPY).

The EUR/USD pair gathers strength to around 1.1640 during the early Asian session on Monday. The Euro (EUR) edges higher against the US Dollar (USD) as US-Iran peace deal hopes improve risk sentiment.

The AUD/USD pair gains momentum to near 0.7160 during the early Asian session on Monday.

Silver (XAG/USD) remains range-bound on Friday as traders avoid aggressive positioning amid uncertainty surrounding US-Iran negotiations. At the time of writing, the white metal trades near $76.00 and is likely to close the week on a flat note.

USD/JPY holds firm on Friday, remaining confined within this week’s trading range as traders refrain from placing aggressive bullish bets near the 160.00 handle following suspected intervention by Japanese authorities in late April.

The Euro retreats by 0.14% during the North American session amid growing speculation that the US and Iran may reach a deal to end the conflict. The Greenback is recovering some ground, underpinned by Oil prices trimming some of its earlier losses.

The Canadian Dollar (CAD) remains on the defensive against the US Dollar (USD) on Friday as traders look past stronger Canadian Retail Sales figures and keep their attention on developments surrounding US-Iran negotiations.

Deutsche Bank analysts expect Japan’s Tokyo Consumer Price Index (CPI) to show a slight acceleration, with core CPI ex fresh food seen at 1.6% YoY and core-core at 2.0%. Industrial production is forecast to rise 0.2% MoM.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann expect USD/JPY to trade intraday between 158.80 and 159.25 after a brief pop to 159.34 failed to strengthen momentum.

EUR/GBP trades on the back foot on Friday and is set to end the week in negative territory, as the British Pound (GBP) outperforms most major peers despite weaker-than-expected UK Retail Sales data, while upbeat German economic data fails to provide meaningful support to the Euro (EUR).

DBS Group Research economist Radhika Rao notes that the Reserve Bank of India (RBI) has revived monetary operations as the Rupee approached a record low near 97 per US Dollar (USD).

Nordea's strategists Sara Midtgaard and Henrik Unell see scope for Euro (EUR) appreciation against the US Dollar (USD) as policy divergence grows.

Brown Brothers Harriman’s (BBH) Elias Haddad observes GBP/USD trading directionless near its 200-day moving average around 1.3423, with downside risks from potential United Kingdom (UK) swaps curve repricing and a possible leftward shift under a Labour government.

The US Dollar (USD) remains moderately bid against the Japanese Yen (JPY) on Friday, crawling up above 159.00, and nearing 160.00, allegedly the limit of tolerable JPY weakness for Tokyo.

The British Pound (GBP) is up against its major currency peers, but is marginally down to near 1.3420 against the US Dollar (USD) during the European trading session on Friday. The British currency rises even as concerns over United Kingdom (UK) public finances have escalated.

OCBC’s Christopher Wong says USD/JPY’s recent rally is moderating as UST yields and the Dollar ease, but the pair remains elevated. The bank warns Ministry of Finance intervention risk could rise if USD/JPY breaks into the 160–161 area in thin holiday liquidity.

The Australian Dollar (AUD) is down 0.25% to near 0.7130 against the US Dollar (USD) during the European trading session on Friday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note AUD/USD is likely to trade between 0.7120 and 0.7175 in the near term after a sharp rebound left momentum unclear.

European Central Bank (ECB) Governing Council member and Governor of the Central Bank of Malta, Alexander Demarco, said during the European trading session on Friday that the central bank will probably need to hike interest rates in the June policy meeting.

The Euro (EUR) nudges lower against the US Dollar (USD) for the second consecutive day on Friday, on track to close the week in the red for the second consecutive time.