ING strategists Warren Patterson and Ewa Manthey report renewed strength in European gas, with TTF breaking above EUR50/MWh as Middle East risks persist.

Kit Juckes at Societe Generale highlights that EUR/USD has lost downward momentum after slipping from 1.18 to 1.16, despite risk-off conditions and tumbling sentiment indicators.

TD Securities’ Global Strategy Team notes a sharp bear steepening in US yields, with 30-year rates holding above 5% for four consecutive days for the first time since 2007. Markets now price in just over one additional Fed hike between July 2026 and June 2027.

Silver (XAG/USD) trades around $76.55 on Monday, up 0.80% on the day at the time of writing, as the white metal stabilizes after last week’s heavy sell-off.

MUFG’s Lee Hardman expects the British Pound (GBP) to stay on a softer footing as UK political uncertainty rises.

The US Dollar (USD) hesitates against the Swiss Franc (CHF) on Monday after rallying nearly 1.2% in the four previous trading days.

BNY's Bob Savage highlights that the Iran conflict, a drone attack in the United Arab Emirates (UAE) and refinery constraints are pushing Brent toward $110, with fears of airline shutdowns and refinery limits.

Brown Brothers Harriman’s (BBH) Elias Haddad notes Japan is close to the global ‘danger zone’ in bonds as more JGB issuance is planned to fund additional spending. Prime Minister Sanae Takaichi has called for a supplementary budget to offset higher commodity prices linked to the Iran war.

United Overseas Bank's (UOB) Quek Ser Leang and Lee Sue Ann turn more negative on AUD/USD after a sharp sell-off toward 0.7140. They now sees a real chance of testing and breaking the major 0.7100 support, with 0.7065 as the next downside level.

Gold (XAU/USD) is trading flat above $4,500 on Monday, stabilising after a four-day sell-off from $4,770. Investors await developments in the Middle East conflict as a spokesperson for the Iranian Foreign Ministry affirmed earlier on the day that the US-Iran talks are ongoing.

The AUD/USD pair trades flat around 0.7150 during the European trading session on Monday after recovering significant early losses. The Aussie pair bounces back as the US Dollar (USD) turns upside down on renewed hopes that the United States (US) and Iran will reach a deal soon.

Deutsche Bank’s Sanjay Raja expects the United Kingdom (UK) labour market to remain weak after a surprise drop in the jobless rate driven by self-employment.

According to the International Monetary Fund (IMF) staff, the Bank of England (BoE) doesn’t need to raise rates this year, based on the current energy price outlook.

TD Securities strategists judge China’s April data as weak, citing higher Oil prices and soft consumer sentiment. They expect targeted fiscal stimulus focused on infrastructure and see the PBoC remaining cautious on easing.

DBS Group Research economist Philip Wee argues that recent US Dollar (USD) resilience reflects higher-for-longer US yields rather than genuine fundamental strength.

AUD/JPY trades around 113.65 on Monday at the time of writing, up 0.16% on the day. The pair rebounds as persistent weakness in the Japanese Yen (JPY) supports the cross, despite disappointing economic data from China limiting gains for the Australian Dollar (AUD).

The Indian Rupee (INR) extends its over-a-week-long downfall against the US Dollar (USD) at the start of the week. The USD/INR pair explores the uncharted territory and posts a fresh all-time high at 96.33, as a fresh upside move in oil prices has weakened the Indian Rupee further.

The Euro (EUR) is ticking higher against the US Dollar (USD) on Monday, but remains below previous lows, now turned into resistance in the 1.1650-1.1670 area, after bouncing from near 1.1600 earlier in the day.

The US Dollar (USD) shows moderate losses against its main currency peers on Monday, as rumours about ongoing US-Iran negotiations have lifted market sentiment during the European session.

ING’s Chris Turner argues that higher long-dated yields and elevated energy prices are negative for Eurozone growth and thus for the Euro. He expects the European Central Bank to keep sounding hawkish to avoid losing control of long-end yields.

MUFG’s Lee Hardman notes that the US Dollar’s (USD) renewed strength and higher US yields have helped USD/JPY trade back above 159.00 overnight, with the pair moving closer to 160.00.

Oil markets remain on alert after new comments from International Energy Agency (IEA) Executive Director Fatih Birol, reported by Reuters on Monday.

Deutsche Bank strategists note that the S&P 500 has extended its run to seven consecutive weekly gains, the longest since 2023, even as rising bond yields and Oil prices triggered the worst daily decline since March.

Silver prices (XAG/USD) rose on Monday, according to FXStreet data. Silver trades at $76.02 per troy ounce, up 0.11% from the $75.94 it cost on Friday.

Societe Generale economists argue that the British Pound (GBP) and Gilts face a pivotal period as the Bank of England (BoE) reacts to persistent inflation and wage pressures, which have slowed the pace of rate cuts and hurt long-end Gilts.

NZD/USD rebounds around 0.5860 on Monday at the time of writing, up 0.35% on the day, after earlier touching a low near 0.5822 following disappointing economic data from China.

The USD/CAD pair trades marginally lower to near 1.3735 during the European trading session on Monday. The Loonie pair faces selling pressure as the US Dollar (USD) turns upside down due to hopes that the United States (US) and Iran will break the deadlock and reach a deal soon.

Dow Jones futures pare its intraday losses, remaining down by 0.56%, near 49,350 during the European hours ahead of the United States (US) regular opening on Monday. Meanwhile, the S&P 500 fall 0.23% to near 7,410, and the Nasdaq 100 futures hovers near 29,240.

Gold (XAU/USD) struggles to capitalize on a modest recovery from its lowest level since March 30, touched earlier this Monday, albeit it holds steady below the $4,550 level through the first half of the European session.

Standard Chartered strategists note that China’s April data showed weaker domestic demand, with both consumption and investment slowing even as exports supported industrial production.