EUR/GBP trades with a negative bias on Monday as diplomatic efforts to end the US-Iran war lift market sentiment and support risk-sensitive currencies, with the British Pound (GBP) relatively outperforming the Euro (EUR).

TD Securities analysts expect US ISM Services to soften in March as geopolitical uncertainty from Iran weighs on sentiment. They forecast the index to fall to 54.2, reversing February’s gain, with most components slowing and employment slipping back into contraction.

Commerzbank’s Dr. Henry Hao and Moses Lim note that Indonesia March CPI slowed to 3.5% year-on-year, back within Bank Indonesia’s (BI) target range, but warns that Middle East conflict and higher freight costs pose upside inflation risks.

Gold (XAU/USD) edges higher on Monday as the US Dollar (USD) softens amid improving market sentiment, with traders reacting to fresh diplomatic developments aimed at ending the US-Iran war. At the time of writing, XAU/USD is trading around $4,691, rebounding from an intraday low near $4,600.

The Pound (GBP) is trading higher against the Japanese Yen (JPY) on Monday, favoured by a moderate optimism amid news of a peace plan to end the war in Iran.

BNY’s Head of Markets Macro Strategy Bob Savage notes the Japanese Yen continues to weaken with USD/JPY near 160 as JGB yields hit multi‑decade highs and the Bank of Japan (BoJ) maintains a hiking bias.

The United States (US) Institute of Supply Management (ISM) Services Purchasing Managers’ Index (PMI) data for March is scheduled to be published today at 14:00 GMT.

The Euro (EUR) is trading higher against the US Dollar (USD) on Monday, favoured by a moderate improvement in market sentiment, amid news of a potential ceasefire in the Iran war.

The AUD/USD pair trades 0.5% higher to near 0.6930 during the European trading session on Monday. The Aussie pair strengthens as riskier assets trade firmly amid ongoing discussions between the United States (US) and Iran regarding an end to the Middle East war.

US benchmark West Texas Intermediate Oil (WTI) depreciated about $5 from session highs on Monday, hitting lows near $101.00 per barrel, from $106.44 highs, weighed by news that the US and Iran might be bringing positions closer to a peace deal through international intermediaries.

Silver prices (XAG/USD) rose on Monday, according to FXStreet data. Silver trades at $73.53 per troy ounce, up 0.67% from the $73.05 it cost on Friday.

OCBC strategists Sim Moh Siong and Christopher Wong highlight that higher Oil prices and safe-haven flows have re-anchored the Dollar, reversing expectations for a steady USD decline.

Silver price (XAG/USD) holds gains after recovering daily losses, trading around $73.30 per troy ounce during the European hours on Monday.

The New Zealand Dollar (NZD) is capitalising on a moderate US Dollar (USD) weakness on a calm trading session, with most markets closed on Easter Monday.

The Pound Sterling attracts significant bids against the US Dollar (USD) on Monday, rising 0.45% to near 1.3255 during the European trading session.

USD/CAD depreciates as the US Dollar (USD) eases amid improved market sentiment following the reports, suggesting prospects for a ceasefire in the Middle East. The pair trades around 1.3920 during the European hours on Monday.

MUFG’s Lloyd Chan notes that persistent geopolitical tensions around Iran are reinforcing USD strength. Elevated US yields, resilient labour data and fading expectations for Fed rate cuts underpin Dollar carry appeal.

The US Dollar (USD) nudges lower against the Japanese Yen (JPY) on Monday, with trading volumes at low levels as most markets remain closed on Easter Monday. The pair hit session lows at 159.35 on the early European session, as hopes of a peace deal in Iran are putting the US Dollar under pressure.

The Indian Rupee (INR) falls after a flat opening against the US Dollar (USD) at the start of the Reserve Bank of India’s (RBI) monetary policy week.

Gold (XAU/USD) builds on its steady intraday ascent and climbs to the $4,700 neighborhood, or a fresh daily high during the first half of the European session on Monday.

The EUR/USD pair trades 0.4% higher to near 1.1560 during the European trading session on Monday.

EUR/JPY recovers its recent losses from the previous trading day, hovering around 184.40 during the European hours on Monday. The technical analysis of the daily chart suggests the currency cross is moving sideways within an ascending triangle pattern, indicating consolidation.

BNY’s Bob Savage highlights a severe Oil supply shock, with front‑month Brent spiking above $140 and forward prices far lower, tightening global financial conditions.

Iran has confirmed that it has received the proposal of a ceasefire by the United States (US) through Pakistan and has stated that it is being reviewed, according to a Senior Iranian official, Reuters reports.

Dow Jones futures have recovered daily losses and are trading around 46,660, up by 0.06%, during European hours on Monday, ahead of the regular United States (US) open.

Societe Generale economists see the Euro area entering the latest energy shock with improved resilience and reduced Oil and gas intensity.

According to a Reuters report, a source aware of ceasefire proposals between the United States (US) and Iran has stated that both nations are discussing a two-tier deal that involves plans to end hostilities by Monday, followed by the reopening of the Strait of Hormuz and Iran dropping its nuclear a

Here is what you need to know on Monday, April 6:

The AUD/USD pair gathers strength around 0.6910 during the early European trading hours on Monday. Hopes for a US-Iran ceasefire provide some support to the riskier asset, such as the Australian Dollar (AUD) against the Greenback.

EUR/CAD moves little for the second consecutive trading day, trading around 1.6070 during the early European hours on Monday.