USD/JPY extends its steep decline on Monday as the Japanese Yen (JPY) rallies against the US Dollar (USD), supported by hawkish Bank of Japan (BoJ) expectations, capital repatriation and the unwinding of Yen-funded carry trades.

USD/CAD trades around 1.3810 on Monday at the time of writing, down 0.15% on the day. The pair comes under some pressure as the sharp rise in Oil prices supports the Canadian Dollar (CAD), although underlying strength in the US Dollar (USD) limits the downside.

EUR/USD holds modest gains at the start of North American trading hours on Monday as a softer US Dollar (USD) and stronger-than-expected Eurozone Gross Domestic Product (GDP) data support the Euro (EUR).

The British Pound (GBP) has resumed its bearish trend against a stronger Japanese Yen (JPY) on Monday, as comments from Japanese officials hinting at a steeper Bank of Japan (BoJ) monetary tightening cycle have provided a fresh boost to the Yen.

The Euro (EUR) is marginally higher to near 1.1625 against the US Dollar (USD) during the European trading session on Monday. The major currency pair trades broadly sideways amid an extended weekend in the United States (US) due to Labor Day.

The Euro (EUR) is trading lower against the British Pound (GBP) following mixed Eurozone macroeconomic figures on Monday. The EUR/GBP pair is testing support at a previous resistance area, at 0.8585 ahead of the US session opening, after failing to find acceptance above the 186.00 area last week. 

The Japanese Yen (JPY)  resumes its uptrend against the US Dollar (USD) on Monday, as the dust from a bright US Nonfarm Payrolls (NFP) report settles, and Japanese officials hint at some steepening of the Bank of Japan’s (BoJ) tightening cycle ahead.

EUR/JPY falls 1.11% on Monday and trades around 179.45 at the time of writing. The sharp decline in the cross mainly reflects the strong appreciation of the Japanese Yen (JPY), supported by growing expectations of monetary policy tightening by the Bank of Japan (BoJ).

The GBP/JPY cross meets with heavy supply during the early part of the European session on Monday and weakens below the 209.00 mark, hitting its lowest level since February 24 amid a broad-based rally in the Japanese Yen (JPY).

ING’s Chris Turner argues that Euro fundamentals remain contained despite German regional election results highlighting political tensions for Chancellor Merz’s CDU. Solid Eurozone growth and investor confidence are offset by downside risks from this week’s ECB meeting.

Eurozone’s Sentix Investor Confidence data, a key indicator of Investor morale, comes in significantly higher at 5.1 in September from 0.9 in August. The sentiment data turned positive in August after remaining negative in the previous five months.

The Swiss Franc (CHF) bounced up against the US Dollar (USD) on Monday.

Commerzbank’s Thu Lan Nguyen argues that EUR/USD remains primarily driven by the US Dollar, with Euro-side developments only amplifying or dampening trends.

The British Pound (GBP) is marginally higher at around 1.3525 against the US Dollar (USD) during the European trading session on Monday.

The USD/CAD pair extends its sideways consolidative price move through the early European session on Monday and currently trades just below mid-1.3800s.

Silver (XAG/USD) nudges lower on Monday, hitting session lows in the mid-$65.00s after a reversal from the $68.00 area.

The EUR/GBP cross loses ground to around 0.8585 during the early European trading hours on Monday. The Euro (EUR) attracts some sellers against the British Pound (GBP) following the German economic data. 

The Australian Dollar (AUD) trades 0.13% higher at around 0.7217 against the US Dollar (USD) during the European trading session on Monday, the highest level seen in over three months.

The Euro (EUR) trades flat against the US Dollar (USD) on Monday, hovering just above 1.1610 at the European session opening, following a reversal from the 1.1640 area last week.

Danske Research Team reports EUR/USD trading in a narrow 1.1610–1.1620 range after quickly reversing losses from a stronger US jobs report.

The NZD/USD pair trades in negative territory near 0.5875 during the early European trading hours on Monday, pressured by a firmer US Dollar (USD). Traders raise their bets on a US Federal Reserve (Fed) rate hike in the September policy meeting following stronger-than-expected US jobs data. 

The Japanese Yen (JPY) trades flat against the US Dollar (USD) at around 156.00 at the start of the week, but is close to its four-month low of 155.23.

The Indian Rupee (INR) opens higher against the US Dollar (USD) at the start of the week.

The USD/CAD pair trades on a flat note near 1.3835 during the early European session on Monday. The pair steadies as stronger-than-expected US jobs data offsets rising crude oil prices. US markets will be closed on Monday for Labour Day. 

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and trades around the 1.3500 psychological mark during the Asian session on Monday. Moreover, spot prices hold above Friday's swing low, warranting some caution for bearish traders.

The EUR/JPY cross trades in negative territory around 181.20 during the early European trading hours on Monday. The Japanese Yen (JPY) strengthens against the Euro (EUR) as Japanese official projected a Bank of Japan (BoJ) rate hike this month.

USD/CHF gains ground for the second successive day, trading around 0.8110 during the Asian hours on Monday.

The Euro (EUR) trades marginally lower at around 1.1610 against the US Dollar (USD) during the Asian trading session on Monday. The major currency pair edges down as the US Dollar ticks up, with investors turning cautious at the start of the United States (US) Consumer Price Index (CPI) week.

Silver price (XAG/USD) inches higher after opening at a bearish gap, remaining in negative territory and trading around $66.10 per troy ounce during Asian hours on Monday.

The AUD/USD pair holds steady around the 0.7200 mark at the start of a new week and remains close to its highest level since mid-May, touched on Friday.