The Pound Sterling holds modestly firm during the North American session, down a minimal 0.06% as pressure mounts on the UK’s Prime Minister Keir Starmer as his party sustained losses in local elections. The GBP/USD trades at 1.3625 after hitting a daily high of 1.3630.

AUD/USD surges toward the 0.7260 region on Monday, supported by improving demand for commodity-linked currencies despite renewed geopolitical tensions after United States (US) President Donald Trump rejected Iran’s latest peace proposal, calling it “totally unacceptable.”

Scotiabank strategists Shaun Osborne and Eric Theoret report the Euro (EUR) is slightly softer versus the Dollar (USD), struggling against resistance in the upper 1.17s as softer European Central Bank (ECB) expectations weigh, partly offset by better risk sentiment.

MUFG analysts argue that the Swedish Krona is underperforming as the Riksbank, central bank of Sweden, stays cautious despite the energy shock.

The Swiss Franc (CHF) regains traction against the US Dollar (USD) on Monday, with USD/CHF pulling back after opening the week with a bullish gap as the Greenback gives up part of its earlier gains while traders continue to monitor developments in the Middle East.

OCBC’s FX Christopher Wong describes USD/JPY as a two-way trade after suspected Ministry of Finance (MoF) intervention capped gains near 160. He notes bearish daily momentum but says fundamentals are not decisively Japanese Yen (JPY)-positive, with higher Oil prices still a drag.

Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) is a mild outperformer versus the US Dollar (USD), supported by firmer Oil, even as USD/CAD trades about one standard deviation above their fair value estimate.

MUFG analysts highlight that the Australian Dollar has outperformed since the Middle East conflict, supported by higher energy prices and a hawkish Reserve Bank of Australia.

Rabobank’s Senior FX Strategist Jane Foley discusses the Japanese Yen (JPY), noting that expected endorsement from the United States (US) Treasury for recent Ministry of Finance (MoF) FX intervention should support the currency in the near term.

GBP/USD recovers some ground after opening the week with a bearish gap as geopolitical headlines surrounding the Middle East continue to stir volatility across financial markets.

USD/CAD trades on a flat note around 1.3670 on Monday, down modestly by 0.05% on the day at the time of writing.

BNP Paribas economists project Eurozone Gross Domestic Product (GDP) growth slowing from 1.5% in 2025 to 1.0% in 2026 and 1.3% in 2027, with inflation rebounding to 3.0% and 3.3%. Activity is expected to withstand the energy shock thanks to investment in defence, AI and electrification.

Commerzbank reports that GBP/USD advanced despite a major United Kingdom (UK) political shock from local elections. Labour suffered heavy council losses while Reform UK and the Greens gained ground, underscoring a more fragmented political landscape.

ING’s Chris Turner says EUR/USD has held up thanks to a softer Dollar and strong Asian AI-related risk sentiment, but Eurozone activity data remain weak. He argues that expectations for European Central Bank (ECB) hikes this summer are preventing a drop toward 1.15.

AUD/USD trades around 0.7245 on Monday at the time of writing, virtually unchanged on the day after opening the week with a bearish gap. The pair recovers its initial daily losses, but the Australian Dollar (AUD) remains weighed down by renewed risk aversion supporting the US Dollar (USD).

HSBC strategists note Japanese policymakers have intervened to support the Japanese Yen (JPY), with sustainability of gains hinging on Bank of Japan (BoJ) policy, global yields and fiscal headlines.

The British Pound (GBP) is drawing support from a weak Japanese Yen (JPY) on Monday, with bulls aiming for the top of last week´s trading range at the 214.00-214.25 area.

The US Dollar (USD) appreciates against the Japanese Yen (JPY) on Monday, retracing Friday’s losses and returning to levels above 157.00 at the time of writing.

AUD/JPY posts modest gains around 113.70 on Monday, up 0.13% on the day at the time of writing.

Deutsche Bank’s Jim Reid and team say markets are digesting a firm US payrolls report that reinforced views of a resilient labour market and persistent inflation risks.

The GBP/USD pair fills a major part of its weekly bearish gap opening on Monday and is now looking to extend the momentum further beyond the 1.3600 mark.

The Euro (EUR) is trading moderately higher against the Dollar (USD), yet moving within previous ranges on Monday.

OCBC’s Christopher Wong says British Pound (GBP) has held up despite UK political noise, with local elections pointing to a more fragmented landscape and a medium-term political-risk premium.

Silver price (XAG/USD) gains ground for the fourth consecutive day, trading around $80.40 per troy ounce during the European hours on Monday.

The USD/JPY pair trades 0.25% higher to near 157.00 during the European trading session on Monday. The pair trades firmly as the Japanese Yen (JPY) underperforms across the board amid growing concerns over Japan’s economic outlook due to higher oil prices.

HSBC economists note that “risk-on” G10 currencies, including the Australian Dollar (AUD), have outperformed the US Dollar (USD) this quarter on improved risk sentiment linked to Middle East de-escalation hopes.

The EUR/JPY cross attracts fresh buyers following a bearish gap opening around the 183.80 region on Monday and extends the steady intraday ascent through the first half of the European session.

Rabobank’s Global Strategist Michael Every highlights United States (US) legislative moves on US Dollar (USD) stablecoins via the CLARITY and GENIUS Acts, stressing how reward structures could entrench Dollar-linked digital assets in global finance.

Here is what you need to know on Monday, May 11:

The New Zealand Dollar (NZD) is trading below Friday’s highs against the US Dollar (USD) on Monday. Still, the NZD/USD pair holds within previous ranges, above the late April highs, in the 0.5930 area.