Gold (XAU/USD) recovers after opening the week with a bearish gap, supported by a softer US Dollar (USD).

TD Securities economists expect US inflation data to firm in April, with core Consumer Price Index (CPI) boosted by shelter and airfare components and headline CPI lifted by higher Oil and food prices.

ING’s Frantisek Taborsky says Central and Eastern European (CEE) FX is benefiting from positive global sentiment, with EUR/HUF breaking to new lows below 355. Markets expect Hungary’s new Prime Minister Peter Magyar to unlock EU funds and advance Euro adoption.

Rabobank’s Senior FX Strategist Jane Foley discusses the Japanese Yen (JPY), noting that expected endorsement from the United States (US) Treasury for recent Ministry of Finance (MoF) FX intervention should support the currency in the near term.

GBP/USD recovers some ground after opening the week with a bearish gap as geopolitical headlines surrounding the Middle East continue to stir volatility across financial markets.

USD/CAD trades on a flat note around 1.3670 on Monday, down modestly by 0.05% on the day at the time of writing.

HSBC reports that the Norwegian Krone (NOK) has gained alongside other risk-on currencies versus the Dollar, supported by improved sentiment and domestic policy.

MUFG’s Lee Hardman notes the US Dollar (USD) has rebounded, lifting the Dollar Index (DXY) back above 98.000 as stalled Middle East peace talks and a stronger April Nonfarm Payrolls (NFP) report underpin demand.

BNP Paribas economists project Eurozone Gross Domestic Product (GDP) growth slowing from 1.5% in 2025 to 1.0% in 2026 and 1.3% in 2027, with inflation rebounding to 3.0% and 3.3%. Activity is expected to withstand the energy shock thanks to investment in defence, AI and electrification.

Commerzbank reports that GBP/USD advanced despite a major United Kingdom (UK) political shock from local elections. Labour suffered heavy council losses while Reform UK and the Greens gained ground, underscoring a more fragmented political landscape.

ING’s Chris Turner says EUR/USD has held up thanks to a softer Dollar and strong Asian AI-related risk sentiment, but Eurozone activity data remain weak. He argues that expectations for European Central Bank (ECB) hikes this summer are preventing a drop toward 1.15.

OCBC’s FX Christopher Wong notes US Dollar Index (DXY) traded slightly softer despite a strong US jobs report, as markets focus more on geopolitics, Oil and Fed repricing.

AUD/USD trades around 0.7245 on Monday at the time of writing, virtually unchanged on the day after opening the week with a bearish gap. The pair recovers its initial daily losses, but the Australian Dollar (AUD) remains weighed down by renewed risk aversion supporting the US Dollar (USD).

The Euro (EUR) is trading moderately higher against the Dollar (USD), yet moving within previous ranges on Monday.

HSBC strategists note Japanese policymakers have intervened to support the Japanese Yen (JPY), with sustainability of gains hinging on Bank of Japan (BoJ) policy, global yields and fiscal headlines.

The British Pound (GBP) is drawing support from a weak Japanese Yen (JPY) on Monday, with bulls aiming for the top of last week´s trading range at the 214.00-214.25 area.

Societe Generale’s Kenneth Broux notes Brent is up 4%, trading near $105.2, after carving out an interim low around $96 and repeatedly defending its 50-day moving average.

Gold (XAU/USD) pulls back from last week’s high on Monday, reaching session lows a few dollars above the $4,650 level at the time of writing.

The Indian Rupee (INR) starts the week on a negative note against the US Dollar (USD), with the USD/INR pair rising almost 1% to near 95.32.

The US Dollar (USD) appreciates against the Japanese Yen (JPY) on Monday, retracing Friday’s losses and returning to levels above 157.00 at the time of writing.

AUD/JPY posts modest gains around 113.70 on Monday, up 0.13% on the day at the time of writing.

ING’s Chris Turner notes Sterling is softening after UK local elections, as Labour’s losses fuel talk of a leadership contest and a leftward policy shift. He highlights the risk of developments around Manchester Mayor Andy Burnham re-entering parliament.

Deutsche Bank’s Jim Reid and team say markets are digesting a firm US payrolls report that reinforced views of a resilient labour market and persistent inflation risks.

Silver prices (XAG/USD) broadly unchanged on Monday, according to FXStreet data. Silver trades at $80.29 per troy ounce, broadly unchanged 0.08% from the $80.35 it cost on Friday.

The GBP/USD pair fills a major part of its weekly bearish gap opening on Monday and is now looking to extend the momentum further beyond the 1.3600 mark.

OCBC’s Christopher Wong says British Pound (GBP) has held up despite UK political noise, with local elections pointing to a more fragmented landscape and a medium-term political-risk premium.

Iran's foreign ministry spokesperson Esmaeil Baghaei said during the European trading session on Monday that the proposal to the United States (US) was not “excessive”, and Washington continues to have “unreasonable demands”.

Greece Industrial Production (YoY) rose from previous 1.8% to 8.3% in March

Bank of England (BoE) Monetary Policy Committee (MPC) member Megan Greene said during the European trading session on Monday that the central bank needs to wait to see how Middle East conflicts will flare before making any monetary policy adjustments.

Gold (XAU/USD) struggles to capitalize on a modest bounce from a three-day low, touched earlier this Monday, and maintains its offered tone below the $4,700 mark through the first half of the European session.