Societe Generale economists note the United Kingdom (UK) markets still price around 70 bps of Bank of England (BoE) easing in 2026 despite Monetary Policy Committee (MPC) pushback, while the bank’s team expects no cuts this year.
Silver (XAG/USD) trades on the front foot on Monday, supported by a pullback in US Treasury yields as traders reassess the Federal Reserve’s (Fed) monetary policy path. At the time of writing, XAG/USD is trading around $70.50, up nearly 1% on the day.
TD Securities analysts anticipate the Bank of Canada’s (BoC) March Summary of Deliberations will maintain a dovish tone, stressing excess supply and disinflation.
AUD/USD trades around 0.6860 on Monday at the time of writing, down 0.21% on the day, as investors adopt a cautious stance amid escalating geopolitical tensions in the Middle East.
Commerzbank’s Senior Economist Dr. Ralph Solveen notes that Germany’s inflation rate rose from 1.9% to 2.7% in March 2026 as energy prices surged due to the war in Iran, while core inflation stayed at 2.5%.
Rabobank’s Senior FX Strategist Jane Foley notes that the Pound has been the second best performing G10 currency after the Dollar since the Middle East conflict, driven by a sharp repricing of Bank of England (BoE) policy expectations.
ING’s Chief Economist Bert Colijn highlights that Eurozone sentiment weakened in March as the Middle East war hit confidence. The economic sentiment indicator dropped from 98.3 in February to 96.6, with businesses and consumers more worried about inflation.
In an interview with Fox News on Monday, United States (US) Treasury Secretary Scott Bessent said that the Oil market is well supplied, but added that any additional supply would be helpful, per Reuters.
MUFG analysts note that NOK has outperformed most European peers during the Middle East conflict, supported by Norway’s energy exporter status and a hawkish repricing of Norges Bank policy.
HSBC analysts note recent Japanese Yen (JPY) weakness is consistent with higher energy prices and Japan’s net Oil and gas deficit, but warns this macro backdrop could shift.
Annual inflation in Germany, as measured by the change in the Consumer Price Index (CPI), climbed to 2.7% in March (preliminary estimate) from 1.9% in February, Germany's Destatis reported on Monday. On a monthly basis, the CPI rose by 1.1% following the 0.2% increase recorded in February.
Societe Generale analysts note the INR rallied over 1% after RBI intervention and new limits on banks’ net open FX positions, but the currency remains down 4% this month amid heavy FPI outflows.
