The Euro (EUR) crawls higher for the third consecutive day on Monday, against a weak Yen (JPY), weighed down by downbeat Japanese Gross Domestic Product (GDP) figures.

USD/CAD trades around 1.3860 on Monday at the time of writing, down 0.11% on the day. The pair extends its decline as the US Dollar (USD) remains under pressure against the Canadian Dollar (CAD), with investors scaling back expectations of further monetary tightening by the Federal Reserve (Fed).

The Japanese Yen holds marginal gains against the US Dollar (USD) on Wednesday, although the USD/JPY pair has returned to levels above 159.00 during the European session, after hitting daily lows around 158.85.

TD Securities expects the UK labour market to remain soft but stable in June, with employment rising 100k on a three‑month basis and unemployment edging down to 4.7%. Headline average weekly earnings are forecast to slow to 4.0%, while ex‑bonus pay holds at 3.4%.

Commerzbank’s Tatha Ghose notes that the Central Bank of the Republic of Türkiye's (CBRT) survey shows market participants revising inflation forecasts higher and expecting only gradual rate cuts from current effective levels.

MUFG’s Derek Halpenny and Lee Hardman report that Japanese government bond yields are rising despite weaker-than-expected GDP, as markets focus on prospects for further Bank of Japan rate hikes.

The EUR/USD pair builds on last week's bounce from the vicinity of the 1.1500 psychological mark and gains strong follow-through positive traction on Monday.

The British Pound (GBP) extends gains for the second consecutive day on Monday, as investors cut back US Dollar (USD) long positions, amid a dovish repricing of the Federal Reserve’s (Fed) monetary policy.

United Overseas Bank’s (UOB) Quek Ser Leang observes that USD/JPY price action remains choppy, with the pair closing around 159.30 after a dip to 158.58. Intraday direction is unclear, with trading expected between 158.80 and 159.60.

Brown Brothers Harriman’s (BBH) Elias Haddad argues that upcoming Australian wage and labour data are unlikely to shift Reserve Bank of Australia pricing, with futures only partly discounting one final hike.

Commerzbank’s Volkmar Baur argues that softer New Zealand inflation data make a September rate hike by the Reserve Bank of New Zealand (RBNZ) unlikely after July’s move.

The New Zealand Dollar (NZD) keeps crawling higher against a weaker US Dollar (USD) with price action reaching the 0.5920 area for the first time since early June. Kiwi Dollar bulls did not flinch after a set of downbeat data from China on Monday and kept buying the pair, with the US Dollar depreci

The AUD/USD pair attracts strong follow-through buying at the start of a new week and surges past the 0.7100 mark, hitting a fresh high since June 5 as sustained US Dollar (USD) selling offsets China's weak macro data dump.

United Overseas Bank’s (UOB) Quek Ser Leang notes GBP/USD invalidated a recent neutral call by breaking above 1.3555 and closing higher near 1.3532. Intraday, the British Pound (GBP) may extend toward 1.3570, with 1.3600 as firm resistance.

OCBC’s Sim Moh Siong and Christopher Wong highlight that September Bank of Japan (BoJ) hike odds have risen sharply, but the Japanese Yen (JPY) has reacted only modestly. They argue a sustained Yen recovery likely needs clearer commitment to faster policy normalisation.

The Euro (EUR) holds minor gains against the British Pound (GBP) for the third consecutive day on Monday, favoured by European Central Bank (ECB) - Bank of England (BoE) monetary policy divergence.

Here is what you need to know on Monday, August 17:

BNY's Wee Khoon Chong note Sweden’s Riksbank appears comfortable with its current policy stance as inflation stays below target, leaving two hikes in the repo path mainly as a risk acknowledgment.

The USD/CAD pair edges lower to around 1.3860 during the early European session on Monday. The US Dollar (USD) extends the decline against the Canadian Dollar (CAD) as traders pare bets on the US Federal Reserve (Fed) rate hikes.

Brown Brothers Harriman’s (BBH) Elias Haddad says improving United Kingdom (UK) disinflation alongside solid Q2 Gross Domestic Product (GDP) should support the British Pound (GBP) against the US Dollar (USD) and Euro (EUR), but sees limited scope for a lasting rally.

Silver (XAG/USD) trades on a strong footing on Monday, reaching levels above $65.80 at the European session opening times, after bouncing from the $63.50 area on Friday.

United Overseas Bank’s (UOB) Quek Ser Leang highlights that EUR/USD surged to 1.1585, leaving the Euro (EUR) with a firmer tone against the US Dollar (USD). Intraday, the pair could extend gains toward 1.1590, though 1.1610 is seen as strong resistance.

The USD/JPY pair attracts some sellers at the start of a new week, though it lacks bearish conviction and shows some resilience below the 159.00 mark during the Asian session.

The EUR/USD pair builds on last week's bounce from the vicinity of the 1.1500 psychological mark and attracts follow-through buyers for the third straight day.

The AUD/JPY cross trades in positive territory near 113.00 during the early European session on Monday. The Japanese Yen (JPY) softens against the Australian Dollar (AUD) amid weaker-than-expected Japanese Gross Domestic Product (GDP) data.

The Indian Rupee (INR) trades stronger against the US Dollar (USD) on Monday after two days of losses, with the USD/INR pair trading around 95.50 at the time of writing.

EUR/JPY depreciates after two days of gains, trading around 184.20 during the Asian hours on Monday.

AUD/USD gains ground for the second successive day, trading around 0.7090 during the Asian hours on Monday. The pair appreciates as the Australian Dollar (AUD) gains on the hawkish policy stance by the Reserve Bank of Australia (RBA).

USD/CAD extends its losses for the third consecutive day, trading around 1.3870 during the Asian hours on Monday. The pair depreciates as the US Dollar (USD) declines amid weaker-than-expected US economic data and shifting central bank expectations.

The NZD/USD pair attracts buyers for the second straight day and climbs above the 0.5900 mark, hitting a fresh high since June 3 during the Asian session on Monday.