GBP/JPY trades with a positive bias on Monday as the British Pound (GBP) outperforms the Japanese Yen (JPY) amid improving market sentiment surrounding a potential US-Iran deal. At the time of writing, the cross is trading around 214.52, up 0.30% on the day. 🔗 Source 💡 DMK Insight GBP/JPY’s uptick reflects a broader market optimism, but here’s why traders should be cautious. The recent 0.30% gain to 214.52 signals a positive shift, largely driven by easing geopolitical tensions with the US-Iran situation. This sentiment can lead to increased risk appetite, which typically benefits higher-yielding currencies like the GBP. However, traders should keep an eye on resistance levels around 215.00, as a failure to break through could trigger profit-taking or a reversal. Additionally, the correlation with US equities might amplify volatility; if stocks falter, the JPY could regain strength as a safe haven. On the flip side, if the sentiment shifts again, the GBP could face pressure from domestic economic data releases later this week. Watch for any unexpected news that could disrupt this fragile optimism, especially around 214.00, which could serve as a support level. Keeping tabs on these dynamics will be crucial for positioning in the coming days. 📮 Takeaway Monitor GBP/JPY closely around 215.00 resistance and 214.00 support; geopolitical developments could shift sentiment rapidly.

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 $4,572, up 1.40% on the day. 🔗 Source 💡 DMK Insight Gold’s sharp rebound signals a shift in market sentiment, driven by geopolitical tensions. As XAU/USD climbs to around $4,572, traders should consider how the potential US-Iran deal could impact safe-haven demand. If the Strait of Hormuz reopens, it might ease oil prices, further weakening the dollar. This dynamic could lead to increased buying pressure on gold, especially if it breaks above recent resistance levels. Watch for key technical indicators, like the 50-day moving average, which could provide insight into momentum shifts. But here’s the flip side: if the deal falters or tensions escalate, gold could see a rapid sell-off as traders flee to cash. Keep an eye on the daily close; a sustained move above $4,600 could signal a bullish trend, while a drop below $4,500 might indicate a reversal. Monitor the geopolitical news closely, as it could create volatility in both gold and oil markets. 📮 Takeaway Watch for XAU/USD to hold above $4,600 for bullish momentum, while geopolitical developments could create volatility in both gold and oil markets.

The Euro (EUR) advances during Monday’s session, up 0.37% amid renewed hopes for an agreement between the US and Iran to extend the ceasefire by 60 days and discuss a deal regarding Iran’s uranium enrichment program. The EUR/USD pair trades at 1.1645 at the time of writing. 🔗 Source 💡 DMK Insight The Euro’s 0.37% rise signals a potential shift in market sentiment tied to geopolitical developments. Traders should note that the EUR/USD pair at 1.1645 reflects optimism around a US-Iran ceasefire extension, which could stabilize oil prices and impact the Eurozone’s economic outlook. If negotiations progress, we might see the Euro strengthen further, especially if it breaks above key resistance levels around 1.1700. Conversely, if talks falter, expect volatility and a potential pullback. Keep an eye on related assets like oil, as any shifts in supply dynamics could ripple through currency markets. The next few days will be crucial, so watch for news updates and market reactions closely. 📮 Takeaway Monitor the EUR/USD pair at 1.1645; a break above 1.1700 could signal further Euro strength amid US-Iran negotiations.

The Greenback has started the week on the back foot, receding to two-week lows on the back of the generalised improvement in the risk complex, all in response to rising optimism on a potential US-Iran deal. 🔗 Source 💡 DMK Insight The Dollar’s dip to two-week lows signals shifting market sentiment—here’s what that means for traders. With the Greenback weakening amid rising optimism over a potential US-Iran deal, traders should be on alert for volatility in both forex and commodities markets. A stronger risk appetite typically leads to capital flowing into riskier assets, which could further pressure the Dollar. This shift could also impact correlated assets like gold and oil, as a weaker Dollar often boosts their prices. Watch for key resistance levels in the Dollar Index; a break below recent lows could trigger more selling pressure. However, there’s a flip side: if negotiations falter or geopolitical tensions escalate, the Dollar could rebound sharply. Keep an eye on economic indicators this week, particularly any data releases that might affect Fed policy outlooks. The immediate focus should be on the 100.00 level in the Dollar Index—if it breaks, we might see a cascade effect across markets. 📮 Takeaway Monitor the Dollar Index around the 100.00 level this week; a break could signal further weakness and impact risk assets.

UOB’s Jester Koh notes that Singapore’s 1Q26 GDP was sharply revised higher and that MTI kept its 2026 growth forecast at 2.0–4.0%. The bank raises its 2026 GDP forecast to 3.2%, citing sustained AI-related demand and strong electronics indicators. 🔗 Source 💡 DMK Insight Singapore’s GDP forecast revision is a game changer for traders focused on Asian markets. With UOB raising its 2026 GDP forecast to 3.2%, driven by AI demand and robust electronics performance, traders should consider how this impacts sectors like technology and manufacturing. The sustained growth signals potential bullish momentum, especially for stocks tied to these industries. Look for key technical levels in related ETFs or stocks that could react to this news. Also, keep an eye on the broader Asian market sentiment; if Singapore’s economy strengthens, it could lead to increased investment flows into the region, affecting currencies like the SGD and regional equities. However, it’s worth questioning if the optimism is fully priced in. If global economic conditions shift or if AI demand doesn’t materialize as expected, there could be a sharp correction. Watch for any economic indicators or earnings reports that could provide insight into the sustainability of this growth trend. 📮 Takeaway Monitor Singapore’s economic indicators closely; a sustained GDP growth could boost tech and manufacturing stocks, impacting the SGD and regional markets.

Scotiabank’s Global FX Strategy team highlights that global benchmark Oil prices are lower, with WTI nearing the psychologically important $90/bbl level and Brent slipping toward the mid-$90s after briefly trading above $100/bbl. 🔗 Source

USD/CAD trades on the back foot on Monday, snapping a four-day winning streak as markets monitor evolving developments surrounding ongoing US-Iran negotiations. At the time of writing, the pair is trading around 1.3803 after easing from an intraday high near 1.3820. 🔗 Source 💡 DMK Insight USD/CAD’s recent pullback could signal a shift in market sentiment amid geopolitical tensions. After a four-day rally, the pair’s retreat from 1.3820 suggests traders are reassessing their positions as US-Iran negotiations unfold. This geopolitical backdrop is crucial; any escalation could lead to increased volatility in oil prices, which often correlate with CAD movements. Watch for support around 1.3780, as a break below could open the door to further declines. Conversely, if negotiations yield positive outcomes, we might see a quick rebound back toward 1.3820. Keep an eye on economic indicators from both the US and Canada this week, as they could provide additional context for the pair’s movements. The real story is how these negotiations could ripple through related markets, especially commodities like oil, which directly impact CAD strength. 📮 Takeaway Watch USD/CAD closely; a break below 1.3780 could signal further downside, while positive US-Iran news may push it back to 1.3820.

According to Nikkei, the US and Iran agreed to extend the ceasefire from early April by 60 days, the newspaper reported, citing a source. 🔗 Source 💡 DMK Insight The US-Iran ceasefire extension could stabilize oil prices, and here’s why that’s crucial: With tensions in the Middle East often impacting crude oil markets, this 60-day extension might prevent a spike in prices that traders dread. If oil remains stable, it could support broader market sentiment, especially for energy stocks and commodities. Traders should keep an eye on WTI and Brent crude benchmarks, as any disruptions could lead to volatility. Look for resistance levels around recent highs; a breach could signal a bullish trend. But don’t overlook the flip side—if negotiations falter, we could see a quick reversal in sentiment. Keep an eye on geopolitical news and oil inventory reports, as these could serve as catalysts for price movements. Monitoring the daily charts for crude oil will be key in assessing potential breakouts or pullbacks in the coming weeks. 📮 Takeaway Watch for oil price movements around the ceasefire news; key levels to monitor are recent highs for potential breakouts.