HSBC Asset Management spotlights Asia’s small-cap stocks as a strong performer over the past five years, outperforming regional large caps with lower volatility and better sector diversification.

TD Securities economists, led by Robert Both, expect the Bank of Canada to keep the overnight rate at 2.25% through 2026 before lifting it back to a 2.75% neutral level in 2027.

In a post published on Truth Social on Monday, United States (US) President Donald Trump noted that negotiations with the Islamic Republic of Iran are proceeding nicely.

UOB’s Quek Ser Leang and Lee Sue Ann expect USD/SGD to edge lower and test 1.2760 in the near term, though a sustained break below that level is unlikely. They maintain a 1–3 week range-trading view between 1.2730 and 1.2820, with major support at 1.2730 seen as intact.

Gold (XAU/USD) rebounds sharply on Monday as hopes for a US-Iran deal to end the war in the Middle East and reopen the Strait of Hormuz weigh on the US Dollar (USD) and Oil prices. At the time of writing, XAU/USD is trading around $4,556, up 1.0% on the day.

Mexico Trade Balance s/a, $: $3.351B (April) vs $2.499B

Mexico Trade Balance, $ dipped from previous $5.932B to $4.52B in April

DBS Group Research economist Chua Han Teng assesses Singapore’s economic outlook as resilient but increasingly tested by Middle East tensions and energy risks. The bank highlights strong 1Q26 GDP data, robust AI-driven exports, and solid services and construction activity.

Oil prices gapped lower at Monday’s opening times, accelerating the decline observed in the last half of the previous week.

The British Pound (GBP) clings to opening gains around 1.3500 against the US Dollar (USD) during the late European trading session on Monday. The GBP/USD pair trades higher as the market sentiment remains risk-on due to expectations that the United States (US) and Iran will reach a deal soon.

Brown Brothers Harriman’s (BBH) Elias Haddad expects the National Bank of Hungary (MNB) to keep its policy rate at 6.25% for a third straight meeting.

HSBC Asset Management discusses how rising global bond yields, including higher US 10-year Treasuries, are affecting global equities. The report argues that current yield moves are still consistent with an environment stocks can tolerate, as real yields remain low and profit growth is strong.

Gold (XAU/USD) is trading higher on Monday, favoured by a moderate risk appetite amid recent comments from the US and Iran hinting at progress in peace negotiations.

The Indian Rupee (INR) opens on a strong note against the US Dollar (USD) at the start of the week. The USD/INR pair extends its losing streak for the fourth trading day on Monday, sliding to near 95.20, the lowest level seen in almost two weeks.

According to Iran's official news agency, Iranian central bank chief travels to Qatar after Qatari delegation visited Tehran regarding frozen funds.

United States (US) President Donald Trump said in a post on Truth Social during the European trading session on Monday that the deal with Iran will “either be a great and meaningful one, or there will be no deal”.

The Euro (EUR) remains practically flat against the US Dollar (USD) on Monday, capped below the top of last week’s range, in the 1.1660-1.1675 area, with seven-week lows, at 1.1575 relatively close.

UOB’s Quek Ser Leang and Lee Sue Ann note USD/JPY pulled back sharply after closing at 159.19, with scope to test 158.70 while a sustained drop below that level and 158.40 strong support is seen as unlikely.

MUFG’s Lloyd Chan highlights that higher United States (US) 2-year yields and elevated Brent prices are weighing on Indonesian Rupiah (IDR), Philippine Peso (PHP) and Indian Rupee (INR).

Brown Brothers Harriman’s (BBH) Elias Haddad notes that the Dollar index (DXY) risks overshooting the top of its 96.00-100.00 range in the near term as resilient United States (US) growth outpaces peers.

Silver prices (XAG/USD) rose on Monday, according to FXStreet data. Silver trades at $77.80 per troy ounce, up 3.02% from the $75.52 it cost on Friday.

BNY’s Bob Savage argues that South African Reserve Bank (SARB) is likely to lead emerging market tightening as South Africa reverses its easing path and hikes the repo rate back to 7.0%.

EUR/CAD extends its winning streak for the fourth consecutive day, trading around 1.6080 during the European hours on Monday.

ING’s FX Strategist Francesco Pesole expects the Reserve Bank of New Zealand to deliver a hawkish hold at the 27 May meeting, while warning markets underprice the risk of a surprise hike. He sees new projections signalling tightening from 3Q and looks for two 25bp hikes starting in July.

Japan Prime Minister (PM) Sanae Takaichi said during the European trading session on Monday that the potential new debt to compensate for higher household utility and gas bills won’t impact bond markets, as it will be offset higher tax and other revenue sources.

The USD/CAD pair reverses an intraday dip to sub-1.3800 levels and fills a modest weekly bearish gap, hitting a fresh daily top during the first half of the European session on Monday.

UOB’s Quek Ser Leang and Lee Sue Ann note a sharp opening rise in GBP/USD, with rapid upward momentum that could see the pair test 1.3505, while 1.3530 remains a key resistance.

The Euro (EUR) trades 0.15% higher to near 185.00 against the Japanese Yen (JPY) during the European trading session on Monday.

The Swiss Franc (CHF) accelerates its recovery against the US Dollar (USD) on Monday, with the USD/CHF pair reaching 11-day lows below 0.7820 at the moment of trading, down from highs past 0.7900 last week.

Brown Brothers Harriman’s (BBH) Elias Haddad expects the European Central Bank's (ECB) April Account to underline a tightening bias, with markets already pricing high odds of a June rate hike to 2.25%.