German chancellor Merz has voiced support for Bavarian politician Ilse Aigner, 61, to become Germany's first female president, an insider said after Merz expressed backing at a CDU dinner in Berlin on Sunday. Merz, who also serves as CDU chair, is set to formally announce the support on Monday; Aigner is expected to assume the presidency next year.

Trump told CNN an attack on Iran would be extremely unlikely if negotiations make progress, but said US forces are prepared to strike if ordered. He said three aircraft carriers are in position and fully mission-ready, and that the US has identified 38 infrastructure targets in Iran, including bridges and power plants, that could be destroyed within an hour. He added he would prefer to avoid destroying such assets because reconstruction would take years. Trump also said Iran’s air defenses have been destroyed and the regime retains roughly 10% of its previous missile capability and 15% of its drone capability.

NZD rose modestly in early trade after New Zealand’s weekend election left the governing National Party in a favourable position to form a coalition. NZD/USD climbed as much as 0.5% to 0.5569, recovering from a one-plus-year low last week. New Zealand two-year and 10-year government bond yields were broadly unchanged. Jason Wong, senior strategist at BNZ in Wellington, said the result is mildly positive for the NZD and markets currently lean toward a centre-right coalition remaining in power.