Indo-Pacific: Security pacts reshape regional hedging – Rabobank

Benjamin Picton at RaboResearch describes a growing Indo-Pacific arms race and geopolitical hedging as countries adjust security and trade ties in response to a more assertive China.

Forex Today: Markets digest Japan election shock and await key US data

Japanese stocks surged to record highs on Monday, as Prime Minister Sanae Takaichi's Liberal Democratic Party (LDP) basked in a historic election victory.

ECB’s Lagarde: We expect inflation to stabilise sustainably at our 2% medium term target

European Central Bank (ECB) President Christine Lagarde said that they expect inflation to stabilise sustainably at the ECB's 2% medium-term target, during the plenary debate on the state of the Eurozone economy and ECB activities in Strasbourg, France, on Monday.

Canadian Dollar steps up as US Dollar falters

USD/CAD is holding a broader bearish structure on the daily chart, trading near 1.3560 after breaking the long-term uptrend from 2021 during 2025.

AUD: Rally pause as RBA stays hawkish – HSBC

HSBC analysts note that the Reserve Bank of Australia raised its cash rate to 3.85% and revised growth and inflation forecasts higher, assuming the rate reaches 4.2% by end-2026. HSBC economists see the stance as hawkish and expect another 25bp hike in 3Q26.