United States 3-Year Note Auction rose from previous 3.897% to 3.965%
United States 3-Year Note Auction rose from previous 3.897% to 3.965%
United States (US) President Donald Trump said that Iran’s proposal was “stupid” and that they agreed on his terms, but then reversed on them. Trump told reporters in the Oval Office on Monday.
US equity index futures opened the week little changed as Wall Street weighed a renewed flare-up in the US-Iran standoff against this week's marquee inflation print.
The USD/JPY pair attracts some buyers for the second straight day and advances to a four-day high following the disappointing release of Japan's Household Spending data this Tuesday.
West Texas Intermediate (WTI) Oil posts strong gains on Monday, with the US benchmark trading around $94.70 at the time of writing, up 3.18% on the day after opening the week with a significant bullish gap.
The Pound Sterling (GBP) holds modestly firm against the US Dollar (USD) during the North American session on Monday, down a minimal 0.06% as pressure mounts on the UK’s Prime Minister Keir Starmer as his party sustained losses in local elections.
AUD/USD surges toward the 0.7260 region on Monday, supported by improving demand for commodity-linked currencies despite renewed geopolitical tensions after United States (US) President Donald Trump rejected Iran’s latest peace proposal, calling it “totally unacceptable.”
Scotiabank strategists Shaun Osborne and Eric Theoret report the Euro (EUR) is slightly softer versus the Dollar (USD), struggling against resistance in the upper 1.17s as softer European Central Bank (ECB) expectations weigh, partly offset by better risk sentiment.
BNP Paribas economists expect the US economy to grow above potential in 2026, with Gross Domestic Product (GDP) at 2.4% and inflation overshooting at 3.5%. They see the Fed Funds target range steady at 3.5%-3.75% as the Federal Open Market Committee (FOMC) adopts a two-sided outlook.
MUFG analysts argue that the Swedish Krona is underperforming as the Riksbank, central bank of Sweden, stays cautious despite the energy shock.
The Swiss Franc (CHF) regains traction against the US Dollar (USD) on Monday, with USD/CHF pulling back after opening the week with a bullish gap as the Greenback gives up part of its earlier gains while traders continue to monitor developments in the Middle East.
OCBC’s FX Christopher Wong describes USD/JPY as a two-way trade after suspected Ministry of Finance (MoF) intervention capped gains near 160. He notes bearish daily momentum but says fundamentals are not decisively Japanese Yen (JPY)-positive, with higher Oil prices still a drag.