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.

Gold (XAU/USD) regains traction on Monday, reversing earlier intraday losses, as escalating tensions in the Middle East and shifting interest rate expectations keep markets volatile. At the time of writing, XAU/USD is trading around $4,576 after touching a low of $4,419 during the Asian session.

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 will 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.

Germany Consumer Price Index (YoY) increased to 2.7% in March from previous 1.9%

Germany Harmonized Index of Consumer Prices (YoY) in line with expectations (2.8%) in March

Germany Harmonized Index of Consumer Prices (MoM) in line with expectations (1.2%) in March

Germany Consumer Price Index (MoM) above expectations (0.9%) in March: Actual (1.1%)

ING’s Ewa Manthey and Warren Patterson note Aluminium has rallied after Iranian attacks damaged major producers EGA and Alba, compounding existing curtailments in Gulf capacity.

US President Donald Trump said on Monday that the United States (US) is engaged in “serious discussions” with what he described as a “new and more reasonable regime” in Iran, while warning that Washington could launch massive strikes on the country’s key energy infrastructure if a deal is not reache

BNY’s Head of Markets Macro Strategy Bob Savage points out that the Euro has been under pressure, with EUR/USD near 1.15 as EU and Euro area economic sentiment indices fall further below 100.

Danske Research Team highlights that escalating Middle East tensions and US policy signals are lifting Oil prices, with Brent Crude trading near 115 USD/bbl in early Asian dealings.

USD/CAD trades around 1.3910 on Monday at the time of writing, up 0.12% on the day and extending its winning streak to six consecutive days. The pair is supported by a stronger US Dollar (USD) amid rising geopolitical tensions in the Middle East.

MUFG’s Senior Currency Analyst Lee Hardman notes that the Japanese Yen has rebounded, pulling USD/JPY back below 160.00 after verbal warnings from Japan’s currency authorities.

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Iran’s Foreign Ministry spokesperson Esmail Baghaei delivered several statements on Monday reported by Reuters, warning against what he described as a “catastrophic miscalculation” in attempts to link the war in Ukraine to the conflict involving Iran, the United States and Israel.

India Cumulative Industrial Output climbed from previous 4% to 4.1% in February

India Industrial Output registered at 5.2% above expectations (4.7%) in February

India Manufacturing Output increased to 6% in February from previous 4.8%

The US Dollar (USD) has snapped a four-day rally against the Japanese Yen on Monday, and retreated from 20-month highs above 160.00 reached during the early Asian trading session, a level considered a line in the sand for Japanese authorities.

TD Securities strategists Julie Ioffe and James Rossiter argue that the ECB faces a more benign backdrop in 2026 than in 2022.

OCBC strategists Sim Moh Siong and Christopher Wong describe Gold’s latest bounce as largely technical after a near 20% drawdown since the Iran conflict began.

Silver prices (XAG/USD) rose on Monday, according to FXStreet data. Silver trades at $70.92 per troy ounce, up 1.46% from the $69.90 it cost on Friday.

Belgium Consumer Price Index (MoM) declined to 0.12% in March from previous 0.54%

Belgium Consumer Price Index (YoY) climbed from previous 1.45% to 1.65% in March

EUR/GBP trades around 0.8680 on Monday at the time of writing, virtually unchanged on the day. Price action remains limited as investors adopt a cautious stance amid rising geopolitical tensions in the Middle East and ahead of key inflation data from Germany.