JPY Hits 40-Year Low as GBP Leads; Gold Drops $72 Amid Risk-On Shift

The Japanese yen plunged to a 40-year low on Monday, making it the worst-performing major currency of the session, while GBP led gains across the board. USD/JPY surged as yen weakness accelerated, reflecting deepening concerns over Japan's monetary policy trajectory and broader risk appetite shifts. Gold fell sharply by $72 to $3,014, signaling reduced safe-haven demand as equity markets rallied, with the S&P 500 gaining 1.3% and the Nasdaq climbing 2.0%. WTI crude oil rose $1.31 to $70.54, supported by the US strategic petroleum reserve falling to its lowest level since 1983 and a sudden acceleration in US freight market activity. US 10-year yields held steady at 4.37%. Political developments added volatility as the Supreme Court blocked Trump from removing Fed Governor Lisa Cook, with Trump pledging immediate action. SMCI's Taiwan offices were raided in a chip smuggling probe, adding geopolitical risk. Traders should monitor yen positioning closely, as the 40-year low could trigger intervention rhetoric from Japanese authorities, while GBP strength may extend if risk sentiment persists.