The US Dollar Index (DXY) recovered slightly in Monday’s North American session after dropping to its lowest point since 2022. Trading around the 99.60 area, the index attempted to stabilize as investors reacted to signs of rising stagflation risks.

The Canadian Dollar (CAD) appears to have run out of steam, snapping a three-day winstreak and paring some of its newfound gains against the US Dollar.

Fed Governor Christopher Waller said the Trump administration's tariffs posed a significant shock to the US economy that might force the Fed to cut rates to avert a recession, though they could also be just a negotiating tactic with minimal lasting impact.

According to a consumer sentiment survey from the Federal Reserve (Fed) Bank of New York, the share of households bracing for higher inflation, worsening employment prospects, and deteriorating credit conditions has risen rapidly in recent months.

The global crypto market momentum retreated 2% on Monday after United States (US) inflation data triggered double-digit gains for top-ranked over the weekend.

The Dow Jones Industrial Average (DJIA) kicked off Monday on a strong note, getting dragged higher by a general recovery fueled by a fresh spark in the tech rally.

US President Donald Trump signaled a tougher stance on imported pharmaceuticals during a speech on April 14. The president said, “We will do tariffs on imported pharmaceuticals” and added that such tariffs are coming “in not too distant future.”

The world will be watching the Japan/US trade talks that are due to start in Washington on Thursday. Japan is the first major country to have talks with the Trump administration since the Rose Garden tariff address on April 2, Rabobank's FX analyst Jane Foley notes.

GBP/USD revisits the 1.3200 area at the beginning of the week.

The EUR/USD pair showed mild downside on Monday’s session after the European close, though it continued to hover around the 1.1400 region.

West Texas Intermediate (WTI), futures on NYMEX, rises to near $61.30 during North American trading hours on Monday. The Oil price gains as fears of a global trade war have diminished. Investors expect that the trade war will remain confined between the United States (US) and China.

The AUD/USD pair gives up its intraday gains and turns negative during North American trading hours on Monday.

Pound Sterling (GBP) is up 0.6% vs. the US Dollar (USD) and outperforming most of the G10 currencies, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Euro (EUR) is up 0.2% against the US Dollar (USD) and underperforming most of the G10 currencies with the exception of the Canadian Dollar (CAD) and the Swiss franc (CHF), Scotiabank's Chief FX Strategist Shaun Osborne notes.

The Canadian Dollar (CAD) is modestly lower on the day but has made a little more progress overnight to reach its highest level against the US Dollar (USD) since early November.

A late Friday reprieve for consumer electronic imports from the 145% tariff on Chinese goods and the 10% flat rate tariff marks another concession to the global markets, allowing for solid gains in Asian and European equities, along with firmer US equity futures.

Gold price started the week with a small bearish gap but managed to regain its traction during the Asian trading hours. After touching a new record-high of $3,245, XAU/USD entered a consolidation phase and declined toward $3,200.

Canada Wholesale Sales (MoM) below forecasts (0.4%) in February: Actual (0.3%)

In an interview with Fox Business Network on Monday, Kevin Hassett, Director of the US National Economic Council (NEC), said that they are making "enormous progress" on tariff talks with the European Union, per Reuters.

Tariff exemptions from the US offered temporary support to the dollar, but broader concerns about credibility and economic weakness continue to weigh. With market correlations breaking down and investor confidence shaken, USD pressure may persist in the near term, Danske Bank's FX analysts report.

Chance for US Dollar (USD) to dip below 7.2700; the major support at 7.2430 seems to be out of reach. In the longer run, sharp but short-lived price action has resulted in a mixed outlook; USD is likely to trade between 7.2430 and 7.3700 for now.

The latest version of market inflation expectations, published on Friday by Turkey’s central bank (CBT) showed inflation expectation for end-2025 rising by 2pp from 28% to 30%. The margin is not insignificant.

US Dollar (USD) is likely to trade in a 142.30/144.30 range vs Japanese Yen (JPY). In the longer run, USD could continue to decline, but given the deeply oversold conditions, it remains to be seen if 139.55 is within reach, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

In addition to the flight to safe havens, the prospect of a further normalisation of monetary policy by the Bank of Japan is also likely to have supported the yen recently. According to statements made by BoJ Chairman Kazuo Ueda this morning, however, the central bank is leaving all options open.

The US Dollar (USD) continues to face an intense selling pressure, with the US Dollar Index (DXY) sliding to near 99.50. The USD Index has extended its losing streak for the third trading day amid escalating trade war between the United States (US) and China.

The next major resistance for NZD/USD at 0.5905 is likely out of reach for now. In the longer run, NZD is expected to strengthen; the level to watch is 0.5905, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The Ethereum Foundation, through its Co-Executive Director, Tomasz K. Stańczak, outlined a simplified version of its roadmap on Sunday.