G7 leaders attending a summit in Canada issue a joint statement calling for “de-escalation” on Iran. The G7 statement said that members have been consistently clear that Iran can never have a nuclear weapon.

The AUD/JPY cross trims gains near 94.50 during the Asian trading hours on Tuesday. The Japanese Yen (JPY) strengthens against the Australian Dollar (AUD) after the Bank of Japan (BoJ) interest rate decision. Investors will closely monitor the BoJ Press Conference later on Tuesday. 

Japan BoJ Interest Rate Decision in line with forecasts (0.5%)

Japanese Finance Minister Katsunobu Kato said on Tuesday that he has no fixed plan right now to hold further talks with US Treasury Secretary Bessent.

US President Donald Trump and Japanese Prime Minister Shigeru Ishiba failed to reach a trade agreement on the sidelines of the Group of Seven summit, per Bloomberg.

On Monday, an Israeli attack targeted Iran's state broadcaster, while the head of the United Nations nuclear watchdog reported substantial damage to Iran's largest uranium enrichment facility, and Iran urged the United States (US) to force a ceasefire in the aerial war, per Reuters. 

Canadian Prime Minister Mark Carney said on Monday that he had agreed with US President Donald Trump that their two nations should try to wrap up a deal on tariffs within 30 days, per Reuters. 

US President Donald Trump called for the evacuation of Iran’s capital Tehran on Monday, hours after urging the country's leaders to accept a deal to curb its nuclear program as Israel hinted that attacks would continue, per Bloomberg

The Bank of Japan (BoJ) is widely expected to leave the short-term interest rate unadjusted at 0.5% after the two-day June monetary policy review ends on Tuesday.

South Korea Export Price Growth (YoY) declined to -2.4% in May from previous 0.7%

South Korea Import Price Growth (YoY): -5% (May) vs previous -2.3%

United States 20-Year Bond Auction: 4.942% vs previous 5.047%

US President Donald Trump said that "Iran is not winning this way," adding that they should talk "before it's too late." He said that Iranians want to talk about a de-escalation. He also delivered some trade comments focused on Canada.

The Wall Street Journal reported on Monday that Iran seeks talks with the United States (USD) and Israel and sends messages via Arab intermediaries to end hostilities, per Reuters.

Russia Central Bank Reserves $: $687.3B vs $678.7B

Israel's Prime Minister (PM) Benjamin Netanyahu said on Monday that the Israeli air force is in control of the skies over Tehran, per Reuters.

United States NY Empire State Manufacturing Index came in at -16 below forecasts (-5.5) in June

USD is likely to trade in a range between 7.1770 and 7.1970. In the longer run, USD has likely moved into a 7.1620/7.2200 range trading phase, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Canada Housing Starts s.a (YoY) above forecasts (248K) in May: Actual (279.5K)

This was always meant to be a very busy week for markets, as a few key central bank meetings – including the Federal Reserve's – were set to refresh the market understanding of policymakers’ stance on the inflation-growth balance in the second month of global US protectionism.

New Zealand Dollar (NZD) is likely to trade in a range between 0.6000 and 0.6050. In the longer run, upward pressure has faded; NZD is likely to trade in a range of 0.5970/0.6080 for now.

TradingKey - The situation in the Middle East has deteriorated. Last week, the three major US stock indexes all recorded declines. The Dow Jones Industrial Average fell 1.32%, the S&P fell 0.39%, and

Retail sales growth accelerated to a 17-month high in May on front-loaded policy support. Better sentiment after US-China tariff truce supported steady export and IP growth.

Handelsblatt, a German newspaper, reported on Monday that the European Commission is prepared to accept a flat-rate United States (US) tariff of 10% under clear conditions.

Esmaeil Baghaei, an Iranian Foreign Ministry spokesperson, said on Monday that the Iranian parliament is preparing a bill to leave the nuclear Non-Proliferation Treaty (NPT).

An official from the Indian Trade Ministry said on Monday that “India and US are aiming to sign interim deal before July 9.”

The eurozone’s dependence on energy price exports should put a curb on EUR/USD upside in our view, ING's FX analyst Francesco Pesole notes.

A spokesperson for the Israeli military said on Monday that they have “destroyed more than one-third of Iran's surface-to-surface missile launchers.”

TradingKey - According to the National Bureau of Statistics on June 16, China's total retail sales of consumer goods in May rose 6.4% year-on-year to reach CNY 413.26 billion, marking the fastest grow

Turkey Budget Balance increased to 235.2B in May from previous -174.7B