Makro

European Central Bank policymaker Peter Kazimir said on Monday that although they are not committed to any fixed interest rate path, they remain firm in their policy approach.

OCBC strategists Sim Moh Siong and Christopher Wong describe Gold as consolidating after rebounding from 4510, with high Oil prices still complicating the inflation–Fed outlook.

According to the European Central Bank's (ECB) quarterly Survey of Professional Forecasters (SPF), inflation rate in the Eurozone is projected to average 2.7% in 2026 before softening to 2.1% in 2027 and 2% in 2028.

Commerzbank’s Thu Lan Nguyen notes that EUR/USD has nearly returned to pre-war levels as the Euro (EUR) proves resilient and the US Dollar (USD) retreats. Markets expect the European Central Bank (ECB) to hike in June, but Nguyen doubts pricing for three hikes by year-end.

The GBP/USD pair gathers strength around 1.3600 during the early European session on Monday. Signals from the Bank of England (BoE) that suggest a potential shift toward higher interest rates later this year underpin the Pound Sterling (GBP) against the US Dollar (USD).

EUR/JPY holds losses after paring its daily losses, trading around 183.90 during the Asian hours on Monday. The technical analysis of the daily chart indicates the currency cross maintains a bearish near-term bias as spot holds beneath both the 50-day and nine-day Exponential Moving Averages (EMAs)

The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, turns higher on Friday, recovering from earlier weakness, though it remains on track to close the week in negative territory.