The Swiss Franc loses ground against the US Dollar and the euro on Monday as risk appetite improves amid the start of US-Iran talks, which were deemed positive by US Vice President JD Vance.
OCBC strategists Sim Moh Siong and Christopher Wong highlight that Malaysian Ringgit (MYR) has softened despite supportive domestic data, as Fed-led hawkish repricing keeps US Treasury yields and the US Dollar (USD) firm. Softer Oil offers only a buffer rather than a catalyst.
The US Dollar Index (DXY), which measures the value of the Greenback against a basket of major currencies, is trading near the 101.00 area on Monday, up 0.26% on the day at the time of writing.
The Mexican Peso (MXN) posts a 0.34% loss on Monday as the Greenback recovers some ground, driven by the Federal Reserve's (Fed) hawkish tilt, which pushed the US Dollar (USD) higher. At the time of writing, USD/MXN trades at 17.35 after bouncing off daily lows of 17.30.
AUD/JPY extends its sideways price action on Monday near levels last seen in September 1990, as persistent weakness in the Japanese Yen (JPY) keeps the cross supported while fears of another intervention by Japanese authorities limit further gains.
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report that USD/CNH spiked to 6.7980 before reversing, leaving the pair broadly unchanged near 6.78.
A hot inflation print and a rebound in Crude Oil ought to be a recipe for a stronger commodity currency, which makes the Canadian Dollar's slide to fresh 14-month lows all the more telling.
There is something faintly absurd about a currency pair holding this high while one half of it represents a country that has just lost its prime minister. GBP/JPY settled Monday close to 214.00, sitting on its rising 50-day average after a pullback from this month's peak near 216.50.
OCBC strategists Sim Moh Siong and Christopher Wong note that USD/SGD is trading with a bid tone on a firmer US Dollar (USD) backdrop, with resistance around 1.2940 and support near 1.2840/50.
Gold (XAU/USD) price posts modest gains of 0.50% on Monday as talks between the US and Iran began on a positive note, driving Oil prices lower and reducing inflation expectations. At the time of writing, the XAU/USD pair trades at $4,179, after bouncing off daily lows of $4,136.
NZD/USD trades in negative territory around 0.5730 on Monday, extending its retreat for the fourth consecutive day. The pair hit its lowest level since April 8, against a backdrop of broad US Dollar (USD) strength and persistent uncertainty surrounding the US-Iran peace process.
UOB economists Julia Goh and Loke Siew Ting note Malaysia’s May headline inflation rose to 2.0% year-on-year, the highest since July 2024, driven by Food, Housing, Utilities and Transport. Year-to-date inflation of 1.7% supports their full-year 2.0% forecast.
MUFG’s Michael Wan notes that Asian currencies should benefit from stronger regional growth differentials versus the US, particularly in AI-related export economies such as South Korea, Taiwan, Malaysia and Singapore.
The AUD/USD pair fell near the 0.700 area on Monday, struggling to extend gains as investors remain cautious ahead of the upcoming US Personal Consumption Expenditures Price Index (PCE), the Federal Reserve’s (Fed) preferred inflation gauge.
EUR/USD trades under pressure on Monday, extending losses from the previous week as expectations of a hawkish Federal Reserve (Fed) underpin the US Dollar (USD), even as easing tensions in the Middle East curb safe-haven demand for the Greenback.
The Dow Jones Industrial Average (DJIA) booked a green close on Monday, adding roughly 167 points, or 0.3%, on a session that was anything but bullish underneath.
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that USD/SGD remains supported around 1.29 as the Singapore Dollar (SGD) Nominal Effective Exchange Rate (S$NEER) trades near the top of its band, implying the pair should hover close to this level.
The Pound Sterling (GBP) advances some 0.14% on Monday as US-Iran negotiations laid a “good foundation,” according to US Vice President JD Vance, after ending the first round of talks in Switzerland.
BNY’s Geoff Yu highlights that iFlow Carry has turned negatively significant for the first time in 2026, signalling ongoing unwinding of carry trades but also a potential contrarian opportunity.
The USD/JPY pair sank as low as 161.07 on Monday, retreating from highs near 161.90 as traders remain alert to possible Japanese intervention after the pair moved close to a four-decade high.
Nomura’s Dominic Bunning highlights that British Pound (GBP) has reacted calmly to Keir Starmer’s resignation, with investors focusing on the prospect of Andy Burnham becoming Prime Minister and his choice of Chancellor.
Silver (XAG/USD) trades around $65.90 at the time of writing on Monday, up 1.69% on the day and snapping a three-day losing streak. The white metal is attracting renewed investor interest as markets assess the implications of diplomatic progress between the United States (US) and Iran.
National Bank of Canada's (NBC) Matthieu Arseneau and Alexandra Ducharme note that Canadian headline inflation rose to 3.2% in May, above the Bank of Canada’s (BoC) target range, driven mainly by higher gasoline and food prices.
TD Securities, led by Oscar Munoz and Eli Nir, reports that the Federal Reserve (Fed) has shifted hawkishly and is expected to keep policy rates on hold through 2026 and 2027.
Deutsche Bank’s Shreyas Gopal notes that markets had largely anticipated Andy Burnham becoming UK Prime Minister by the Autumn Budget, leaving the risk premium in Sterling broadly unchanged.
Gold (XAU/USD) edges higher on Monday as traders react to signs of progress in US-Iran negotiations following the first round of direct talks held earlier in the day in Switzerland, with Pakistan and Qatar acting as mediators.
Royal Bank of Canada (RBC) economist Abbey Xu notes that Canadian inflation rose to 3.2% year-over-year in May, mainly due to higher energy prices, airfares and food costs.
USD/CAD trades little changed on Monday after a brief bout of weakness following stronger-than-expected Canadian inflation data. At the time of writing, the pair is trading around 1.4165, hovering near its highest level since April 2025.
TD Securities’ Ryan McKay and Bart Melek highlight that crude Oil and petroleum product flows from the Middle East have rebounded sharply, but this surge is seen as temporary as trapped Gulf barrels clear.
European Central Bank (ECB) President Christine Lagarde said on Monday that policymakers are not yet seeing signs that the latest inflation shock requires a more aggressive policy response, even as geopolitical tensions add fresh uncertainty to the Eurozone outlook.
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