USD/JPY rebounds after posting modest losses the previous day, trading around 154.60 during European hours on Monday. The pair appreciates as the US Dollar (USD) gains amid rising oil prices and growing Federal Reserve (Fed) rate hike bets.

EUR/CAD depreciates further after paring its recent gains from the previous day, trading around 1.6030 during European hours on Monday.

European Central Bank (ECB) Governing Council member and Governor of the National Bank of Slovakia (NBS), Peter Kazimir, said during the European trading session on Monday that he is “increasingly concerned about gas and power prices”.

European Central Bank (ECB) Governing Council member and head of Lithuania's central bank, Gediminas Simkus, said during European trading hours on Monday that the possibility of monetary policy actions in every upcoming meeting cannot be excluded.

Societe Generale strategists note that India’s FX reserves surged by $44.9bn to a record $785.7bn in early September, largely due to Reserve Bank of India (RBI) mobilisation measures such as the FCNR(B) scheme.

Iran's Foreign Ministry Spokesperson said during the European trading session on Monday that reports about nuclear activity in Iran's Pickaxe mountain (Kolang Kouh) are baseless. The spokesperson added, “Saudi Arabia insisted for meeting between Tehran and Gulf powers in Oman not to take place.”

Brown Brothers Harriman’s (BBH) Elias Haddad notes that Canada’s August Consumer Price Index (CPI) will test the Bank of Canada’s (BoC) warning that upside inflation risks have increased. Headline CPI is expected to remain at 3.0% y/y, while core measures are seen hovering around 2%.

Canada’s August Consumer Price Index (CPI) figures will be the focus of attention when published on Monday.

NZD/USD falls after registering modest gains in the previous day, trading around 0.5780 during European hours on Monday. The pair depreciates as the US Dollar (USD) gains support amid aggressive Federal Reserve (Fed) rate-hike bets for Wednesday’s decision following hotter US inflation reports.

USD/IDR gains ground for the third successive day, trading around 17,700 during the early European hours on Monday. The pair appreciates as the US Dollar (USD) gains support amid aggressive Federal Reserve (Fed) rate-hike bets for Wednesday’s decision following hotter US inflation reports.

Commerzbank’s Michael Pfister highlights unusually strong UK growth in the first quarter and weaker outcomes later in the year, driven largely by services. He argues this seasonal distortion complicates Bank of England policy signals, limiting conclusions from July’s robust data.

Danske Research Team notes that equities advanced on Friday, leaving the broader market only about 1% lower for the week despite hotter US CPI, higher front-end yields and a sharp Oil rally. Cyclicals outperformed defensives and the VIX stayed below 16.

European Central Bank (ECB) President Christine Lagarde said in an interview on Saturday that the current energy shock is longer-lasting.

ING analysts Warren Patterson and Ewa Manthey note Brent is up around 3% as Saudi Arabia’s East-West pipeline shutdown intensifies supply concerns following recent attacks.

Japan Capacity Utilization down to 0.5% in July from previous 4.1%

Japan Industrial Production (MoM) came in at -0.2% below forecasts (0.1%) in July

Japan Industrial Production (YoY): 3.9% (July) vs previous 4.1%

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground for the third consecutive day and trading around 99.30 during Asian hours on Monday.

Iranian state media claimed an Iranian commercial vessel was struck in the Strait of Hormuz on Saturday, killing one person, amid an ongoing conflicts between the United States (US) and Iran for control over the crucial energy chokepoint, CNN reported.

New Zealand Business NZ PSI increased to 51.2 in August from previous 50.6

Omani Foreign Minister Badr Albusaidi said that a meeting in Oman between ‌Gulf countries and Iran to discuss possible agreements on the Strait of Hormuz, which had been scheduled for Monday, ‌has been postponed, Reuters reported on Sunday.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that USD/SGD has rebounded strongly, with short-term momentum pointing higher but key resistance at 1.2705 expected to limit gains.

DBS Group Research expects Taiwan’s central bank to keep its policy rate unchanged on September 17, before raising it to 2.125% in December.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann reports that USD/CNH has bounced sharply to 6.7153, with intraday gains likely capped near 6.7200.

The US Dollar Index (DXY) closes the week near the 99.00 zone, little changed on the day and holding the ground it clawed back after a brief wobble on Thursday's US inflation release.

ING analysts Chris Turner and Padhraic Garvey argue the Bank of Japan is likely to hike 25bp to 1.25% and then proceed cautiously.

US Treasury yields fall during the North American session following the release of US inflation data, but are poised to finish the week higher. The US 10-year Treasury yield is down 1 basis point to 4.951% but has gained over 16 basis points, or 3.49%, in the week.

MUFG’s Michael Wan notes that Asia FX and rates have stayed relatively stable despite sharply higher US Treasury yields, but he warns this resilience may not last in the near term.

EUR/GBP is easing on Friday and slipping toward the 0.8580 area. The cross had pushed to the top of its recent range in the high 0.8590s before running out of steam.

DBS Group Research forecasts an improvement in China’s industrial production to 5.0% year-on-year in August, helped by strong export growth driven by AI-related electronics.