The British Pound rallies to an 18-year high against the Japanese Yen, registering solid gains of over 0.77% as the GBP/JPY clears the previous year-to-date (YTD) high of 216.60 as the cross-pair clears the 217.00 figure for the first time since January 2008.

USD/JPY spent Monday doing what it has done for most of the year, grinding higher while officialdom watched.

GBP/USD has quietly put together eight consecutive higher daily closes, a grind from near 1.3150 that has delivered the pair directly onto its 200-day Exponential Moving Average (EMA), with the 50-day EMA just beneath it and the 1.3400 handle immediately overhead.

The Australian Dollar extends its rally for three straight trading sessions, up 0.25%, as investors adjust their interest rate expectations for the Federal Reserve, following a soft US jobs report.

NZD/USD trades under pressure near the 0.5700 level as the US Dollar (USD) remains supported by hawkish-leaning comments from Federal Reserve (Fed) Governor Christopher Waller and resilient United States (US) services data.

Rabobank’s FX Strategy team discusses the New Zealand Dollar (NZD) ahead of the July 8 Reserve Bank of New Zealand (RBNZ) meeting, where consensus and the bank expect a 25 bp hike to 2.5%.

USD/CHF gains 0.37% on Monday, trading around 0.8060 at the time of writing, as the US Dollar (USD) rebounds despite slightly softer expectations for further monetary tightening by the Federal Reserve (Fed).

USD/JPY trades around 162.30 on Monday at the time of writing, up 0.58% on the day, extending its rebound after last week's pullback.

The Pound Sterling steadies during the North American session, as the week begins in a risk-off mood, as evidenced by overall US Dollar strength in the FX markets, even though soft jobs data and trimmed hawkish Fed bets for the rest of the year.

Scotiabank strategists Shaun Osborne and Eric Theoret note GBP/USD near 1.3338 is steady versus the US Dollar (USD) and outperforming on crosses despite weak construction Purchasing Managers' Index (PMI) data.

The Euro (EUR) trades on the back foot against the US Dollar (USD) on Monday as investors return after the extended US Independence Day weekend. At the time of writing, EUR/USD is trading around 1.1421, down 0.12% on the day.

AUD/USD trades with a cautious tone, sideways near the 0.6930 level on Monday after Australian inflation data showed further easing price pressures, while mixed United States (US) services figures kept the US Dollar (USD) broadly supported but without strong momentum.

Silver (XAG/USD) pauses a four-day winning streak on Monday as buyers take a breather following last week's 5.55% rally. A firmer US Dollar (USD) is also capping the precious metal's upside.

USD/CAD extends its advance for a second consecutive day and trades around 1.4230 at the time of writing on Monday, up 0.20% on the day.

Scotiabank strategists Shaun Osborne and Eric Theoret note EUR/USD around 1.1418 trading softer against the US Dollar, though mid-pack within G10. Euro area Producer Price Index (PPI) and retail sales were in line with expectations, while German factory orders surprised higher.

The Australian Dollar (AUD) is confronting a notable shift in market momentum as fresh domestic data points to cooling inflation.

Scotiabank strategists Shaun Osborne and Eric Theoret describe USD/CAD around 1.4215 as consolidating, with the Canadian Dollar retaining a soft undertone despite narrower US–Canada front-end spreads.

GBP/JPY edges higher on Monday, climbing to levels last seen in January 2008 as the Japanese Yen (JPY) remains under pressure across the board. The Yen resumed its decline after a brief pullback last week, with USD/JPY climbing back to its highest level in four decades.

Societe Generale analysts describe AUD/USD extending its pullback after breaking below the May trough around 0.7070 and retesting the 200-DMA near 0.6870/0.6830, aligned with March lows. They stress this zone as key support, noting November 2025’s correction also held there.

MUFG’s Lee Hardman highlights that EUR/USD is trading just above 1.1400, testing the bottom of its 1.1400–1.1800 range. The Euro has faced selling on weaker data and reduced ECB hike expectations, but recent indicators show resilience.

Commerzbank’s Tatha Ghose notes that June Turkish Consumer Price Index (CPI) and Producer Price Index (PPI) data were better than expected as the energy shock faded, with headline CPI slowing to 32.1% year-on-year and PPI to 28.1%.

BNY’s Geoff Yu reports that Australia’s Melbourne Institute inflation gauge fell again in June, with both headline and trimmed mean measures easing.

ING’s Chris Turner says EUR/USD is consolidating above 1.1400 as markets reassess European Central Bank (ECB) and Fed paths, with a September ECB hike priced below 50% probability.

The Japanese Yen (JPY) has resumed its broader downtrend against the US Dollar (USD) on Monday following a mild relief last week.

HSBC strategists argue that the USD/JPY pair is trading near its highest level in around 40 years and may have shifted into a new, higher range.

The Swiss Franc (CHF) pares recent gains against the US Dollar (USD) on Monday, as fresh frictions in the Middle East are dampening investors’ appetite for risk in an otherwise calm market session.

NZD/USD trades around 0.5680 at the time of writing, down 0.50% on the day as the New Zealand Dollar (NZD) remains under pressure against a stronger US Dollar (USD).

MUFG’s Lee Hardman notes that the Japanese Yen (JPY) has weakened again, pushing USD/JPY back above 162.00 and coinciding with further selling at the long end of the JGB curve.

BNY’s Geoff Yu argues that European disinflation is allowing focus to shift from emergency inflation control toward growth and fiscal credibility.

Eurozone Retail Sales rises at a moderate pace of 0.2% Month-on-Month (MoM) in May against the estimates of 0.3%. In April, Retail Sales, a key measure of consumer spending, declined by 0.4%.