The British Pound collapses on Monday as Middle East escalations push the Greenback higher, while Oil prices extend their gains for the fourth consecutive trading day. At the time of writing, the GBP/USD trades at 1.3184, down by more than 0.50%.

USD/JPY retreats on Monday and trades around 159.60 at the time of writing, down 0.44% on the day, after reaching a nearly 20-month high above 160.00 earlier in the day. The move lower follows renewed warnings from Japanese authorities about potential intervention in the foreign exchange market.

EUR/USD extends its losses on Monday, slipping back below the 1.1500 psychological mark as a broadly stronger US Dollar (USD) keeps the Euro (EUR) under pressure. At the time of writing, the pair trades near 1.1444, remaining on the back foot for a fifth consecutive day.

Scotiabank strategists Shaun Osborne and Eric Theoret report that the Japanese Yen opened very weak, with USD/JPY spiking near 160.50 before stabilizing after fresh warnings of potential “bold action” from Japan’s Vice Finance Minister Mimura.

Silver (XAG/USD) trades on the front foot on Monday, supported by a pullback in US Treasury yields as traders reassess the Federal Reserve’s (Fed) monetary policy path. At the time of writing, XAG/USD is trading around $70.50, up nearly 1.0% on the day.

AUD/USD trades around 0.6860 on Monday at the time of writing, down 0.21% on the day, as investors adopt a cautious stance amid escalating geopolitical tensions in the Middle East.

HSBC analysts note recent Japanese Yen (JPY) weakness is consistent with higher energy prices and Japan’s net Oil and gas deficit, but warns this macro backdrop could shift.

Germany Consumer Price Index (YoY) increased to 2.7% in March from previous 1.9%

Germany Harmonized Index of Consumer Prices (YoY) in line with expectations (2.8%) in March

Germany Harmonized Index of Consumer Prices (MoM) in line with expectations (1.2%) in March

Germany Consumer Price Index (MoM) above expectations (0.9%) in March: Actual (1.1%)

USD/CAD trades around 1.3910 on Monday at the time of writing, up 0.12% on the day and extending its winning streak to six consecutive days. The pair is supported by a stronger US Dollar (USD) amid rising geopolitical tensions in the Middle East.

MUFG’s Senior Currency Analyst Lee Hardman notes that the Japanese Yen has rebounded, pulling USD/JPY back below 160.00 after verbal warnings from Japan’s currency authorities.

The US Dollar (USD) has snapped a four-day rally against the Japanese Yen on Monday, and retreated from 20-month highs above 160.00 reached on Monday, a level considered a line in the sand for Japanese authorities.

EUR/GBP trades around 0.8680 on Monday at the time of writing, virtually unchanged on the day. Price action remains limited as investors adopt a cautious stance amid rising geopolitical tensions in the Middle East and ahead of key inflation data from Germany.

HSBC analysts argue the Canadian Dollar (CAD) has outperformed most G10 peers during the Middle East conflict but now appears to be losing momentum.

Eurozone Economic Sentiment Indicator above forecasts (96.5) in March: Actual (96.6)

Eurozone Industrial Confidence came in at -7, above expectations (-9) in March

Eurozone Services Sentiment registered at 4.9 above expectations (4) in March

The Pound (GBP) accelerated its downtrend against the Japanese Yen (JPY) on Monday.

USD/CAD continues its winning streak for the sixth successive day, trading around 1.3920 during the European hours on Monday. The pair gains ground as the US Dollar (USD) regains its ground amid increased safe-haven demand on rising doubts over a resolution to the Iran war.

Societe Generale analysts highlight that USD/JPY has reclaimed its 50‑DMA and is breaking above its multi‑year range, pointing to further upside toward 162.00 and the 163.20/163.70 channel top.

Germany Baden-Wuerttemberg CPI (MoM) up to 0.9% in March from previous 0.2%

Germany Baden-Wuerttemberg CPI (YoY) increased to 2.5% in March from previous 1.8%

Germany Hesse CPI (YoY) increased to 2.9% in March from previous 2.2%

Germany Hesse CPI (MoM) increased to 1.1% in March from previous 0.4%

Germany Saxony CPI (MoM) up to 1.1% in March from previous 0.3%

Germany Saxony CPI (YoY) increased to 2.8% in March from previous 2.3%

Germany Brandenburg CPI (YoY) climbed from previous 2% to 2.8% in March

Germany Brandenburg CPI (MoM) increased to 1.1% in March from previous 0.4%