Kevin Hassett, Director of the United States (US) National Economic Council (NEC), said on Monday that there is no reason for the Federal Reserve to not cut rates now.

The Indian Rupee (INR) kicked off the week on a softer note, weakening against the US Dollar (USD) on Monday as investors flocked to the Greenback after the United States (US) launched airstrikes targeting Iranian nuclear facilities over the weekend.

The direction of oil prices this morning reflects the market’s cumulative view on what it deems to be the current level of risk regarding the Middle East crisis.  Brent oil spiked higher at the open only to fall back to below levels traded towards the end of last week.

Gold (XAU/USD) is trading in a tight range on Monday after the United States (US) carried out coordinated strikes on Iran’s nuclear infrastructure over the weekend.

Mexico Retail Sales (YoY) dipped from previous 4.3% to -2% in April

Mexico Retail Sales (MoM) declined to -1% in April from previous 0.5%

The Japanese Yen (JPY) is weak, down a sizeable 1.2% vs. the US Dollar (USD) and hitting fresh local lows while threatening a push to levels last seen in early April, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

Pound Sterling (GBP) is weak and down 0.5% against the US Dollar (USD), a mid-performer among the G10 in an environment of broad-based USD strength, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

The Euro (EUR) is weak, down 0.5% against the US Dollar (USD) and a mid-performer among the G10 in an environment of broad-based USD strength, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

The Pound Sterling (GBP) slumps to near 1.3370 against the US Dollar (USD) during European trading hours on Monday. The GBP/USD pair weakens as investors rush to safe-haven assets, following the escalation of tensions between the United States (US) and Iran.

The Canadian Dollar (CAD) ended last week on a soft note amid rising geo-political tensions and has eased a little further over the weekend to trade back to near 1.38, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

The EUR/USD has failed to return above the 1.1500 level on Monday and has turned lower, to reach levels right above the last two weeks' lows, at 1.1450.

The EUR/GBP pair posts a fresh two-month high near 0.8575 during European trading hours on Monday. The cross trades broadly stable after the release of the preliminary United Kingdom (UK)/Eurozone Purchasing Managers’ Index (PMI data for June.

US Dollar (USD) bearishness subsided a little last week, helped by the mildly hawkish outcome of the FOMC, and has receded further this morning as markets react to the US attack on Iran’s nuclear facilities and concerns over potential Iranian responses, Scotiabank's Chief FX Strategists Shaun Osborn

Crude Oil retreated from five-month highs at the $7750 area in the early Asian session, but downside attempts have been capped right above $73.00.

The US Dollar is trading with moderate gains against the Swiss Franc on Monday, but remains trapped within the last few days' trading range, as the 0.8200 level keeps holding bulls for now.The Greenback is appreciating against most of its main peers, but is failing to perform any significant advance

The Japanese Yen (JPY) kicks off the week under pressure, stretching its losing streak to a third consecutive day against the US Dollar (USD) on Monday.

AUD/USD is under pressure after failing to break resistance at 0.6545, with the pair now testing key support levels that could determine the next leg of its trend, Société Générale's FX analysts note.

Brent crude’s steep rally faces a key technical test as prices approach major resistance levels, with stretched momentum suggesting a possible near-term pullback, Société Générale's FX analysts note.

Gold price (XAU/USD) exhibits a sluggish performance above $3,350 during European trading hours on Monday.

It came as no surprise that Fed Chair Jay Powell would draw the wrath of the US president with the FOMC's decision to leave interest rates unchanged once again – nor did the increasing rudeness displayed by the US president come as a surprise.

US Dollar (USD) is expected to trade in a 7.1750/7.1950 range. In the longer run, USD has likely moved into a 7.1620/7.2200 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The Dollar has reclaimn¡med its traditional safe-haven status, with investors rushing away from risk on concerns about the possibility of a wider conflict in the Middle East after this weekend’s attack on Iran’s nuclear sites. The US Dollar is the strongest of the G8 currencies on Monday.

US President Trump had signalled it, and now it has happened. The US government has joined in on Israel's attacks on Iran and, according to reports, destroyed important nuclear facilities.

A move to 0.6355 in the AUD/USD pair can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The Indian Rupee (INR) gains ground after sliding to near 86.90 against the US Dollar (USD) during the European trading session on Monday.

Here are a few initial considerations on the FX reaction to this weekend’s US strikes in Iran, with the caveat that this is a fast-developing situation. First, the dollar bounce looks small so far, especially considering its oversold and undervalued position.

USD/JPY jumped in response to geopolitical escalation in the Middle East. USD/JPY was last at 147.82 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Pound Sterling (GBP) may retest the 1.3385 level; a sustained break below this level seems unlikely for now. In the longer run, downward momentum is beginning to build; it may take a while before 1.3335 comes into view, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

US Dollar (USD) rose in early trade, with impact more pronounced on Asian FX than DM FX. US joining Israel on attack in Iran risks a deeper conflict in the Middle East. DXY was last seen trading at 99.41 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.