ING’s Chris Turner argues that higher long-dated yields and elevated energy prices are negative for Eurozone growth and thus for the Euro. He expects the European Central Bank to keep sounding hawkish to avoid losing control of long-end yields.

MUFG’s Lee Hardman notes that the US Dollar’s (USD) renewed strength and higher US yields have helped USD/JPY trade back above 159.00 overnight, with the pair moving closer to 160.00.

Societe Generale economists argue that the British Pound (GBP) and Gilts face a pivotal period as the Bank of England (BoE) reacts to persistent inflation and wage pressures, which have slowed the pace of rate cuts and hurt long-end Gilts.

NZD/USD rebounds around 0.5860 on Monday at the time of writing, up 0.35% on the day, after earlier touching a low near 0.5822 following disappointing economic data from China.

The USD/CAD pair trades marginally lower to near 1.3735 during the European trading session on Monday. The Loonie pair faces selling pressure as the US Dollar (USD) turns upside down due to hopes that the United States (US) and Iran will break the deadlock and reach a deal soon.

The British Pound (GBP) is trading higher against the US Dollar (USD) on Monday, to pare losses from a four-day sell-off.

The USD/IDR pair prolongs its recent well-established uptrend and advances to a fresh all-time peak, beyond the 17,700 mark, at the start of a new week.

The AUD/USD pair stages a goodish intraday recovery from the 0.7120-0.7115 area, or a fresh monthly low touched earlier this Monday, and sticks to modest gains through the first half of the European session.

MUFG’s Michael Wan notes that the Indian Rupee (INR) has been the weakest major Asian currency in 2026, sliding to a record low above 96 per US Dollar (USD) and losing about 5.5% since the Iran conflict began.

UOB’s Quek Ser Leang and Lee Sue Ann maintain a constructive view on USD/JPY after the pair advanced toward 158.84. Intraday, a push above 159.00 is anticipated, though staying above this barrier is uncertain and 159.40 is seen as distant resistance.

USD/CHF halts its five-day winning streak, trading around 0.7860 during the early European hours on Monday. The currency pair depreciated as the US Dollar (USD) surrendered its daily gains, despite a backdrop of heightened risk aversion and rising US interest rate hike expectations.

The GBP/JPY cross stages a modest recovery from a one-and-a-half-week trough, set earlier this Monday, and retakes the 212.00 mark during the early European session.

The Euro (EUR) rally against the British Pound (GBP) has been capped at 0.8730 on Monday, and the pair retreats to session lows sub-0.08720 at the time of writing.

Commerzbank’s Charlie Lay highlights that Indian Rupee (INR) has weakened nearly 12% against the US Dollar (USD) over a year, making it Asia’s worst performer, driven by heavy equity outflows and higher Oil import costs.

UOB’s Quek Ser Leang and Lee Sue Ann note that EUR/USD has dropped to a six-week low near 1.1620, with strong downward momentum keeping risks skewed lower.

The GBP/USD pair trades lower near 1.3300 in the early European trade at the start of the week, the lowest level seen in over five weeks.

The USD/CAD pair edges higher to around 1.3750 during the early European trading hours on Monday. The US Dollar (USD) extends its upside against the Canadian Dollar (CAD) as traders have largely priced ‌out US interest rate cuts this year, while expectations for a hike have risen. 

The Indian Rupee (INR) extends its over-a-week-long downfall against the US Dollar (USD) at the start of the week. The USD/INR pair explores the uncharted territory and posts a fresh all-time high at 96.33, as a fresh upside move in oil prices has weakened the Indian Rupee further.

The USD/JPY pair scales higher for the sixth consecutive day – also marking the seventh day of a positive move in the previous eight – and climbs to a two-and-a-half-week high during the Asian session on Monday.

The EUR/JPY cross gathers strength to near 184.80, snapping the four-day losing streak during the early European trading hours on Monday. A hawkish tone from the European Central Bank (ECB) provides some support to the Euro (EUR) against the Japanese Yen (JPY).  

EUR/USD remains subdued for the sixth successive day, trading around 1.1620 during the Asian hours on Monday. The pair loses ground as the US Dollar (USD) rises on the US Federal Reserve (Fed) shifting toward a more aggressive policy stance on inflation.

The USD/CHF pair holds steady near 0.7870 during the early European session on Monday. The pair currently trades near the highest since April 30, bolstered by a stronger US Dollar (USD). Traders will closely monitor the developments surrounding the US-Iran conflicts. 

AUD/JPY extends its losses for the third successive day, trading around 113.20 during the Asian hours on Monday. The technical analysis of the daily chart suggests a potential busted pattern or bearish failure as the currency cross is positioned on the lower trendline of an ascending triangle.

The USD/CAD pair trades with a positive bias above mid-1.3700s during the Asian session on Monday, though it remains below a one-month top touched last Friday.

The NZD/USD pair trades in negative territory around 0.5830 during the Asian trading hours on Monday. The New Zealand Dollar (NZD) faces some selling pressure following the downbeat Chinese economic data. 

The GBP/USD pair adds to last week's heavy losses and remains under some selling pressure for the fifth consecutive day on Monday. Spot prices drop to the 1.3300 mark, or the lowest level since April 8, during the Asian session and seem vulnerable amid a broadly firmer US Dollar (USD).

On Monday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.8435 compared to Friday's fix of 6.8415 and 6.8086 Reuters estimate.

The EUR/USD pair trades in negative territory around 1.1615 during the early Asian session on Monday. The Euro (EUR) extends the decline as the prolonged US-Iran conflict weighs on the riskier assets.

The AUD/USD pair trades on a flat note near 0.7150 during the early Asian session on Monday. The pair steadies after retreating from multi-year highs amid shifting US interest rate expectations and ongoing geopolitical tensions.

EUR/GBP climbs to near one-month highs on Friday as rising political uncertainty in the United Kingdom pressures the British Pound (GBP). At the time of writing, the cross is trading around 0.8726, on track for weekly gains.