The British pound rose against the U.S. dollar on Monday as the greenback's recent rally paused ahead of critical U.S. jobs and inflation reports due this week. Analysts suggest the dollar may be overextended, with data poised to be the next major market driver.
German government bond yields held steady on Monday, pausing a seven-week surge as investors weighed persistent energy-driven inflation against a heavy slate of upcoming economic data from the U.S. and Eurozone.
Most Asian currencies declined on Monday, with the Japanese yen slipping, as the U.S. dollar remained strong on the back of elevated oil prices and expectations for further Federal Reserve interest rate hikes.
The Canadian dollar is expected to weaken against its U.S. counterpart through the end of 2026 as monetary policy diverges and trade risks persist, according to forecasts from CIBC Capital Markets.
The Canadian dollar is projected to weaken through the end of 2026 due to diverging central bank policies and trade uncertainties, according to a new forecast from CIBC Capital Markets.
The Japanese yen snapped a five-day losing streak after Japan's finance minister revealed that U.S. officials had voiced concerns over the currency's weakness, stoking intervention fears. The U.S. dollar remained broadly supported by high Treasury yields and Fed rate hike expectations.
The benchmark 10-year U.S. Treasury yield climbed for a sixth consecutive week, reaching its highest level since 2007 as strong economic data and hawkish Fed commentary fueled a historic bond market sell-off.
The Swiss National Bank's decision to maintain its policy rate will continue to support the U.S. dollar against the Swiss franc, driven by a significant interest rate differential, according to analysts at UBS.
UBS Switzerland AG has reiterated its view that the Norwegian krone offers the most attractive carry trade among G10 currencies, supported by a hawkish Norges Bank and Norway's position as a net energy exporter.
