Societe Generale strategists highlight that EUR/USD has squeezed above key resistance as Dollar weakness follows softer United States (US) employment data and reduced odds of a September Fed hike. The pair is seen slightly expensive versus nat gas but near fair value on 2-year spreads.

Michael Pfister at Commerzbank highlights a strong Canadian labour market and improving Gross Domestic Product (GDP), Purchasing Managers' Index (PMI) and exports as signs of real-economy recovery, but warns this is fragile due to threatened US tariffs.

NZD/USD trades around 0.5895 on Monday at the time of writing, virtually unchanged on the day.

The Euro (EUR) ticks higher against a softer US Dollar (USD) on Monday, with the EUR/USD pair trading at the 1.1560 area at the time of writing, consolidating gains a few pips below seven-week highs at 1.1773.

The USD/CHF pair struggles to attract any meaningful buyers and remains on the back foot below the 0.8100 mark through the first half of the European session on Monday.

Eurozone’s Sentix Investor Confidence data, a key indicator of Investor morale, turns positive to 0.9 in August from -3.1 in July.

BNY’s Geoff Yu and David Tam expect the Reserve Bank of Australia (RBA) to keep rates unchanged at 4.35%, noting that markets doubt its willingness to hike despite persistent inflation and robust labor and spending data.

The GBP/JPY cross catches aggressive bids at the start of a new week and builds on its strong recovery move from the vicinity of mid-209.00s, or the lowest level since early March touched last Monday.

EUR/JPY rises after registering losses in the previous day, trading around 183.10 during the European hours on Monday. The currency cross is holding a capped tone as it sits below the 50-day Exponential moving average (EMA) while clinging to short-term support at the nine-day EMA.

The AUD/USD pair enters a bullish consolidation phase at the start of the new week as traders opt to move to the sidelines ahead of the crucial Reserve Bank of Australia (RBA) meeting on Tuesday.

The Euro (EUR) posts mild losses against the British Pound (GBP) on Monday, with the EUR/GBP pair testing Friday’s lows at 0.8560, as the situation in the Middle East muddles and Crude prices tick up, adding pressure on the Eurozone’s Oil-importing economies.

USD/CAD gains ground after registering over 0.5% losses in the previous day, trading around 1.3950 during the early European hours on Monday. The pair gains ground as the US Dollar (USD) strengthens on rising safe-haven demand, driven by heightened geopolitical caution.

BNY’s Geoff Yu and David Tam highlight that USD/JPY is grinding higher again after Japan’s recent intervention, with the Japanese Yen (JPY) having already surrendered much of its gains.

Volkmar Baur at Commerzbank expects the RBA to keep rates unchanged, in line with market pricing, but sees scope for a slightly hawkish tone given high petroleum prices and already reduced hike expectations.

The British Pound (GBP) trades higher against its major currency peers and is marginally up at around 1.3500 against the US Dollar (USD) during the European trading session on Monday.

The US Dollar has retraced previous losses against the Japanese Yen (JPY) on Monday, with the USD/JPY pair returning above the 158.00 line, after bouncing up from Friday’s low, at 156.68. The pair has regained some momentum, and bulls are aiming at last week's highs, in the 158.65 area.

Danske Research Team notes that the US Dollar (USD) weakened after a softer US jobs report, allowing EUR/USD to briefly reach its highest level in almost two months.

The Euro (EUR) trades subduedly at around 1.1550 against the US Dollar (USD) during the early European trading session on Monday. The EUR/USD pair edges down as the US Dollar rebounds after a significant fall on Friday.

USD/CHF inches higher after registering over 0.5% losses in the previous trading day, hovering around 0.8090 during the Asian hours on Monday.

The NZD/USD pair is seen extending Friday's late pullback from the vicinity of the monthly peak – levels just above the 0.5900 mark – and drifting lower at the start of a new week.

AUD/USD inches lower after registering modest gains in the previous day, trading around 0.7060 during the Asian hours on Monday. The pair holds losses as the US Dollar (USD) receives support from broad risk aversion.

The USD/CAD pair attracts some dip-buyers at the start of a new week and recovers a part of Friday's heavy losses to the 1.3925 area, or a nearly two-month low.

USD/JPY gains ground after registering modest losses in the previous day, trading around 158.20 during the Asian hours on Monday.

The GBP/USD pair edges lower at the start of a new week and moves further away from an over three-week high, or levels just above the 1.3500 psychological mark touched on Friday.

The EUR/USD pair kicks off the new week on a subdued note and trades just above 1.1550 during the Asian session, well within striking distance of a fresh high since June 17, touched in reaction to the disappointing US jobs data on Friday.

On Monday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.7884 compared to Friday's fix of 6.7904 and 6.7379 Reuters estimate.

The British Pound retreats against the Japanese Yen, down about 0.24%, as the Yen is poised to end the week on a higher note. However, GBP/JPY is poised to finish the week with minimal gains, trading at 212.64.

EUR/JPY trades on the back foot on Friday, easing away even as the Euro (EUR) posts solid gains against the US Dollar (USD). The Japanese currency surged suddenly near the start of the American session after a surprisingly weak United States (US) employment report.

The Pound Sterling edges higher by some 0.29%, yet it remains trading sideways, unable to decisively crack 1.3500 after reaching a weekly peak of 1.3506, and has retreated to the 1.3490 area.

The Mexican Peso capitalizes on a weaker US jobs report and soars versus the US Dollar as risk appetite improves and the US Dollar gets battered on speculation that the Federal Reserve might not raise rates in 2026. The USD/MXN trades at 17.18, after refreshing five-month lows at 17.09.