USD/JPY loses ground for the second successive day, trading around 159.10 during the Asian hours on Monday. The pair depreciates as the Japanese Yen JPY) remains stronger following the release of Japan’s preliminary Q2 Gross Domestic Product (GDP) data.

The Japanese economy expanded 0.3% over the quarter in the second quarter (Q2) of 2026, the preliminary report published by the Cabinet Office showed on Monday. This reading followed a 0.5% growth recorded in Q1 and missed market expectations of a 0.5% expansion.

United Kingdom Rightmove House Price Index (YoY) declined to -1% in August from previous -0.4%

United Kingdom Rightmove House Price Index (YoY) increased to 1% in August from previous -0.4%

New Zealand Business NZ PSI remains unchanged at 50.6 in July

Israel has resumed airstrikes against Lebanon in the past few days after scaling back its attacks in the enclave earlier this month, Reuters reported on Sunday.

US Treasury yields advanced on Friday during the North American session after reversing their course following the release of US Retail Sales data, which disappointed investors. Meanwhile, the lack of news from the Middle East kept Oill prices higher, amid fears of a resumption of hostilities.

Societe Generale analysts highlight CNY’s firm trend, with the currency advancing to 6.7424, its strongest level since February 2023, on Dollar weakness and lower US yields.

Commerzbank notes that the Kospi has rebounded 29.5% from its 30 July low, supported by strong tech earnings and improved sentiment toward semiconductor and memory chipmakers.

Japan CFTC JPY NC Net Positions climbed from previous ¥-45.5K to ¥-42.1K

United States CFTC Gold NC Net Positions up to $217.9K from previous $197.6K

United Kingdom CFTC GBP NC Net Positions increased to £-56.2K from previous £-57.8K

MUFG’s Asia FX Weekly highlights that China’s July activity indicators, following weak Q2 GDP, will be central for the Chinese Yuan and regional FX.

OCBC’s Sim Moh Siong and Christopher Wong note USD/SGD is consolidating around 1.28 as softer United States (US) Producer Price Index (PPI) trims Federal Reserve (Fed) hike expectations but fails to trigger fresh US Dollar (USD) selling.

Societe Generale analysts note USD/KRW has corrected after losing its 200-day moving average near 1478 and is now testing an ascending trend line from 2023 around 1407.

TradingKey - O presidente do Fed de Chicago, Austan Goolsbee, disse que ficou encorajado pelo recente arrefecimento da inflação, mas que serão necessárias novas melhorias semelhantes nos próximos mese

United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann note that USD/CNH remains confined to a tight intraday range, with momentum indicators still flat and the pair expected to trade between 6.7400 and 6.7500.

MUFG analysts focus on several ASEAN indicators for regional currencies. They flag Singapore’s July non-oil domestic exports after June’s strong 20.7% year-on-year rise, and expect Malaysia’s CPI to stay contained at 1.9% year-on-year.

TD Securities’ Robert Both expects Canadian headline CPI to rise to 2.9% year-on-year in July, driven by higher gasoline and food prices, while ex. food/energy components stay muted.

ING’s Lynn Song expects Bank Indonesia to keep its benchmark rate unchanged at 5.75% this week, prioritizing Rupiah stability while avoiding an immediate hike. The report highlights BI’s growing reliance on non-rate tools such as SRBI yields and FX intervention.

Nordea strategists see the Norwegian Krone (NOK) broadly stable over the next six months after July’s EUR/NOK decline, driven by higher Oil prices and Norges Bank’s increased NOK purchases.

ING’s Lynn Song expects China’s July data to show continued sluggish momentum, with only a modest rebound and weak Retail Sales at 1.7% year-on-year. Fixed Asset Investment is forecast to contract further, while Industrial Production remains relatively firm.

Nordea analysts Ole Håkon Eek-Nielsen and Jan von Gerich argue that the Federal Reserve is likely to deliver three more rate hikes over coming quarters to bring inflation back to target.

TD Securities’ Julie Ioffe expects UK headline CPI to rise to 2.9% year-on-year in July, largely due to the Ofgem energy price cap adjustment. Services inflation is forecast to ease to 3.4%, while core goods rise to 1.0%, keeping core CPI at 2.6%.

ING highlights that market consensus sees Japan’s preliminary Q2 Gross Domestic Product (GDP) holding at 0.5% quarter-on-quarter, with Private Consumption remaining the main growth driver.

Commerzbank’s Norman Liebke highlights that Oil and European natural gas are reacting differently to Middle East supply risks, with Brent supported by rerouted flows while gas remains constrained by lost LNG from Qatar and US cargoes diverted to Asia.

Royal Bank of Canada (RBC) economist Claire Fan highlights that Canadian growth rebounded strongly in Q2, supported by resilient domestic demand and improving net trade. She notes that U.S.

ING’s Chris Turner notes that despite sharp moves in Japanese money markets, the Japanese Yen is not finding lasting support. Markets now price a high probability of a Bank of Japan hike in September, narrowing US–Japan swap differentials, yet USD/JPY remains elevated as carry trades persist.

Rabobank strategist Elwin de Groot observes that stronger-than-expected UK GDP has provided fresh ammunition to Bank of England (BoE) hawks, even as the Bank remains reluctant to tighten further. Growth was broad-based, with investment and GDP per capita both rising.

Nordea’s Ole Håkon Eek-Nielsen and Jan von Gerich expect the European Central Bank (ECB) to deliver three additional 25bp rate hikes, taking the deposit rate to 3%.