* EU Core HICP ex Energy & Food (YoY) (Apr) 2.7%, 2.7% forecast, 2.5% previous

* EU Core HICP ex Energy and Food (MoM) (Apr) 0.9%, 0.9% forecast, 0.8% previous

EUR/USD: The euro gained on Monday, buoyed by political developments in Eastern Europe after Romania's centrist candidate, Nicușor Dan, secured a surprise victory in the country's presidential election. Dan, the current mayor of Bucharest, defeated far-right, nationalist challenger George Simion, who had campaigned on a platform inspired by former U.S. President Donald Trump's policies and advocated for a more Eurosceptic direction.With nearly all votes counted, official results showed Dan winning approximately 54% of the vote, compared to Simion's 46%, in the EU and NATO member country of 19 million people. The unexpected result was seen as a strong endorsement of Romania's commitment to pro-European values, offering a boost to the euro amid broader geopolitical uncertainty. Immediate resistance can be seen at 1.1330(23.6%fib), an upside break can trigger rise towards 1.1462(Higher BB).On the downside, immediate support is seen at 1.1151(38.2%fib), a break below could take the pair towards 1.1060(Lower BB).

GBP/USD: The British pound strengthened on Monday as the U.S. dollar weakened in response to a surprise downgrade of the U.S. government's credit rating. On Friday, a major ratings agency lowered the United States' sovereign credit rating by one notch, citing mounting concerns over the country's ballooning $36 trillion debt. It marked the last of the major agencies to issue a downgrade. The move comes as Republicans in Congress push forward a sweeping legislative package -- dubbed the "Big Beautiful Bill" -- that includes tax cuts, spending increases, and reductions in safety-net programs. Analysts warn the proposal could add $3-5 trillion to the debt over the next decade. However, the bill failed to pass a key vote on Friday, raising market uncertainty. Immediate resistance can be seen at 1.3405(23.6%fib), an upside break can trigger rise towards 1.3449(Higher BB).On the downside, immediate support is seen at 1.3217(38.2%fib), a break below could take the pair towards 1.3164(Lower BB).

AUD/USD: The Australian dollar steadied on Monday as investors awaited the Reserve Bank of Australia's (RBA) policy decision scheduled for Tuesday. The RBA is expected to cut its key interest rate by 25 basis points on Tuesday, with two additional cuts likely later this year. This outlook comes amid core inflation holding within the target range and growing concerns over economic growth due to ongoing trade tensions. After holding rates steady in April, market expectations shifted from three rate cuts this year to four, driven by cooling core inflation -- down to 2.9% in the March quarter and increased global trade uncertainties. Markets are fully pricing in a quarter-point cut from the current 4.10% cash rate on Tuesday, as the RBA balances easing inflation pressures with rising external risks.. Immediate resistance can be seen at 0.6456(May 15th high), an upside break can trigger rise towards 0.6496(23.6%fib).On the downside, immediate support is seen at 0.6377(38.2%fib), a break below could take the pair towards 0.6342(Lower BB).

USD/JPY: The U.S. dollar slipped to a one-week low against the yen on Monday as markets absorbed the surprise downgrade of the U.S. government's credit rating. On Friday, Moody's lowered the United States' top sovereign credit rating by one notch, becoming the last major agency to do so, citing concerns over the nation's escalating $36 trillion debt.The downgrade ended the dollar's four-week winning streak, which had been fueled by optimism around U.S. trade deals and improving relations with China that helped ease fears of a global recession. Following the downgrade, the dollar weakened against most major currencies, including the yen. The greenback slipped as much as 0.52% to 144.92 yen for the first time since May 9 on Monday .Immediate resistance can be seen at 146.36 (38.2%fib)an upside break can trigger rise towards 148.56(23.6%fib) .On the downside, immediate support is seen at 144.56(50%fib)a break below could take the pair towards 142.88(61.8%fib)

Equities Recap

European stocks slipped on Monday, snapping a five-week winning streak, as a surprise U.S. credit rating downgrade and disappointing Chinese economic data dampened investor sentiment.

At GMT (12:22) UK's benchmark FTSE 100 was last trading down at 0.49 percent, Germany's Dax was up by 0.07 percent, France's CAC was down by 0.77 percent.

Commodities Recap

Gold prices jumped over 1% on Monday, supported by a weaker dollar and renewed safe-haven demand following Moody's downgrade of the U.S. credit rating and ongoing trade tensions.

Spot gold was at $3,239.18 an ounce by 1033 GMT, reversing the previous session's losses. U.S. gold futures gained 1.7% to $3,242.60.

Oil prices slipped on Monday, pressured by Moody's downgrade of the U.S. sovereign credit rating and weaker-than-expected Chinese economic data showing slower growth in industrial output and retail sales.

Brent crude futures lost 57 cents, or 0.9%, to $64.84 a barrel by 1146 GMT while U.S. West Texas Intermediate crude slipped by 54 cents, or 0.9%, to $61.95. The nearby June WTI contract expires on Tuesday.