Canadian Dollar steadies as Middle East Oil shock caps US Dollar rebound
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.
Norwegian Krone: Norges Bank’s surprise hike and risk support – HSBC
HSBC reports that the Norwegian Krone (NOK) has gained alongside other risk-on currencies versus the Dollar, supported by improved sentiment and domestic policy.
US Dollar Index: DXY supported by peace deadlock and NFP – MUFG
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.
Eurozone: Higher inflation and ECB hikes projected – BNP Paribas
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.
British Pound: Resilient against US Dollar despite election shock – Commerzbank
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.
Euro: Gains capped against US Dollar by weak data – ING
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.
US Dollar: Downside risks for DXY as geopolitics dominate – OCBC
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.
Dow Jones Industrial Average steady as Iran rebuff lifts Oil, CPI in focus
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.
Australian Dollar stays subdued as risk aversion offsets China inflation, hawkish RBA
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).
Euro hovers within previous ranges, amid higher Oil prices, fading Fed easing hopes
The Euro (EUR) is trading moderately higher against the Dollar (USD), yet moving within previous ranges on Monday.
Japanese Yen: Intervention and BoJ policy in focus – HSBC
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.
GBP/JPY Price Forecasts: Bulls are pushing towards 214.10 resistance area
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.