The Mexican Peso gains ground versus the US Dollar on Monday as risk appetite increases the carry-trade appeal of the emerging-market currency, while traders await the release of the Bank of Mexico (Banxico) monetary policy meeting late this week. The USD/MXN trades at 17.32, down 0.14%.
Gold (XAU/USD) price retreats on Monday as the US Dollar (USD) recovers some ground, even though hostilities in the Middle East paused at the request of Iran and other Middle Eastern countries, according to US President Donald Trump. The XAU/USD pair trades at $4,037, down 0.12%.
United States (US) President Donald Trump said on Monday that Washington is currently holding talks with Iran, adding that the discussions are taking place at Tehran's request and describing them as a final opportunity for the Islamic Republic.
The US Dollar Index (DXY) stages a modest comeback on Monday as stronger-than-expected US manufacturing Purchasing Managers Index (PMI) data and uncertainty over US-Iran talks help the Greenback stabilize following last week’s sell-off, triggered by joint intervention from Washington and Tokyo to su
USD/JPY trades with a soft tone near the 156.90 area on Monday as the Japanese Yen (JPY) holds the bulk of the gains secured at the end of last week, when intervention by Japanese authorities and a relatively hawkish Bank of Japan (BoJ) policy announcement triggered a sharp unwind in the pair.
The Pound Sterling (GBP) retreats some 0.27% on Monday as the Greenback recovers some ground amid a pause in US strikes on Iran, while both parties are expected to resume negotiations aimed at securing a rapid deal. The GBP/USD pair trades at 1.3439, after reaching a daily high of 1.3506.
West Texas Intermediate (WTI) US Oil trades around $78.45 at the time of writing on Monday, down 7.76% on the day, as investors unwind the geopolitical risk premium following announcements of a potential agreement between the United States (US) and Iran.
USD/CHF edges higher on Monday as softer Swiss inflation data and a modest recovery in the US Dollar (USD) weigh on the Swiss Franc (CHF). At the time of writing, the pair trades around 0.8109, up 0.38% on the day.
AUD/USD extends its pullback toward the 0.6990 area during Monday's American session after stronger-than-expected United States (US) manufacturing data reinforced the US Dollar (USD).
United Overseas Bank’s (UOB) Quek Ser Leang notes USD/SGD slipped to 1.2809 but closed near 1.2821, with intraday bias still pointing lower.
Silver (XAG/USD) trades around $57.20 at the time of writing on Monday, down 0.73% on the day, after a strong US manufacturing report reinforced expectations that the Federal Reserve (Fed) will maintain a restrictive monetary policy.
EUR/USD trades in a narrow range on Monday as traders await clarity on US-Iran negotiations, while signs of stabilization in the US Dollar following the recent intervention-led weakness cap the Euro’s upside.
Commerzbank’s Tatha Ghose analyses Turkey’s June trade figures, highlighting a 26.2% year-on-year widening of the trade deficit to USD 10.4 billion. While exports and imports both rebounded after May’s holiday distortions, imports are running stronger than exports.
Geoff Yu at BNY sees Brazil and Mexico operating in a more comfortable policy environment after the Fed decision, with anchored United States (US) front-end yields supporting emerging-market duration.
DBS Group Research economist Ma Tieying notes Taiwan’s 2Q GDP growth slowed to 12.9% year-on-year from 14.5% in 1Q, but remained solid on a quarterly basis.
UOB’s Ho Woei Chen notes that Hong Kong’s Gross Domestic Product (GDP) growth slowed to 4.3% year-on-year in 2Q26, with a 0.6% quarterly contraction after a strong start to 2026. Goods exports remain robust, but consumption and investment growth have moderated.
Standard Chartered economists Hunter Chan and Shuang Ding argue that China’s July data likely showed weaker momentum, with official PMIs for manufacturing, services and construction all below 50 and at multi-year lows.
USD/CAD trades around 1.4040 on Monday at the time of writing, up 0.14% on the day as the Canadian Dollar (CAD) comes under pressure following a sharp decline in Oil prices.
Brown Brothers Harriman’s (BBH) Elias Haddad reports USD/JPY plunged in Tokyo after confirmed joint US-Japan intervention to stop the Japanese Yen’s slide, with officials warning they may act again.
Commerzbank's Volkmar Baur reviews the South African Rand (ZAR) after its earlier appreciation against the US Dollar (USD) stalled with the Iran conflict.
BNY’s Geoff Yu expects the Reserve Bank of India to keep the repo rate at 5.25%, relying on macroprudential tools to manage financial stability while INR remains pressured by higher Oil and a stronger Dollar.
DBS Group Research economist Philip Wee argues that the Dollar’s outlook in August is weak after a sharp stumble at the end of July.
USD/JPY steadies on Monday after a sharp decline at the weekly open fuelled speculation that authorities may have stepped into the market again following last week’s coordinated intervention by Japan and the United States (US).
ING’s Chris Turner highlights rare joint US-Japan FX intervention, with Washington participating via the Fed and Japan using the FIMA repo facility to raise Dollars against Treasuries.
Nordea economists Kjetil Olsen and Sara Midtgaard expect Norges Bank to leave the policy rate at 4.25% at next week’s meeting. They highlight that June core inflation was well below the Bank’s projection and see July data remaining subdued.
Rabobank's Senior Market Strategist Benjamin Picton discusses recurring Middle East tensions around the Strait of Hormuz and their impact on Oil and Brent.
The Euro (EUR) ticks higher against the British Pound (GBP) on Monday but remains capped below the bottom of an ascending channel at the 0.8575 area following Thursday and Friday's declines.
Deutsche Bank strategists outlines a United States (US) macro backdrop where the Federal Reserve (Fed) held rates but three officials dissented for a hike, keeping inflation concerns alive. They expect two further 25bp increases this year and closely watch upcoming labour and activity data.
Gold (XAU/USD) trims gains after opening the week with a bullish gap as buyers lack conviction amid conflicting US-Iran headlines and caution ahead of key US employment data. At the time of writing, XAU/USD trades around $4,036, easing from an intraday high of $4,084.
Business activity in the US manufacturing sector expanded at an accelerating pace in July, with the Institute for Supply Management's (ISM) Manufacturing Purchasing Managers' Index (PMI) rising to 55.6 from 53.3 in June. This reading came in better than the market expectation of 54.
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