The US Bureau of Labor Statistics will release the Job Openings and Labor Turnover Survey (JOLTS) for May on Tuesday at 14:00 GMT.

BNY’s Geoff Yu highlights renewed US Dollar (USD) strength as a growing headwind for APAC (Asia-Pacific) currencies, with USD/JPY identified as the pivotal pair.

HSBC notes that dovish comments from European Central Bank (ECB) President Christine Lagarde and lower Oil prices now lead its economists to expect the ECB to hold rates in 2026.

EUR/USD rose above 1.1420 in the American session on Monday as investors digested mixed Eurozone sentiment figures and looked ahead to key German data. The latest Eurozone releases showed Business Climate in June at -0.38, weaker than the previous revised -0.27 reading.

USD/CAD trades around 1.4210 on Monday at the time of writing, as investors remain on the sidelines ahead of a series of key US labor market releases, culminating with Thursday's June Nonfarm Payrolls (NFP) report.

The Pound Sterling advances 0.40% on Monday after Andy Burhnham, set to become the new Prime Minister, commented that he will adhere to fiscal rules set by Chancellor Rachel Reeves at a speech in which he laid the path for the economy.

HSBC argues that the Pound is more exposed to downside risks following Prime Minister Starmer’s resignation and the ensuing UK leadership contest.

AUD/USD trades near the 0.6880 level on Monday, down from Friday's close as traders await fresh catalysts from Australia and China.

Scotiabank strategists Shaun Osborne and Eric Theoret note EUR/USD is holding within a short-term channel as markets await comments from ECB President Lagarde at the Sintra symposium, which historically has had limited impact on near-term price action.

BNY’s Geoff Yu notes that China has expanded its export control list to include more Japanese entities, raising supply chain risks for defense and rare earths, while Japanese commercial sales grew strongly in May.

Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) has gained modest relief as front-end US/Canada spreads retreat about 10bps from last week’s peak, though rate differentials remain punitive.

BNY’s Geoff Yu highlights a recurring post-Sintra pattern in the Euro, with hawkish ECB communication from Christine Lagarde typically driving EUR/USD gains from late June into early July before they fade.

Societe Generale’s Kenneth Broux highlights that USD/JPY has broken out of a brief consolidation and is now challenging its 2024 peak near 162.00. The bank notes strong May retail sales support expectations for further Bank of Japan tightening.

The British Pound (GBP) outperforms its major currency peers, trading 0.25% higher to near 1.3230 against the US Dollar (USD) during the European trading session on Monday.

The Euro (EUR) ticks higher against the US Dollar (USD) on Monday but is struggling to confirm a move above 1.1400, with the 13-month low in the 1.1320 area still within relatively close reach.

United Overseas Bank’s (UOB) Quek Ser Leang reports EUR/USD briefly spiked to 1.1434 before retreating, leaving intraday momentum subdued and the pair expected to trade between 1.1360 and 1.1410.

Deutsche Bank Research points to a busy week for Japan, with strong May retail sales already released and industrial production data due.

The USD/CAD pair trades flat at around 1.14195 during the European trading session on Monday. The Loonie pair consolidates as investors shift focus to the United States (US) Nonfarm Payrolls (NFP) data for June, which will be released on Thursday.

AUD/USD remains subdued for the second successive day, trading around 0.6890 during the European hours on Monday. The pair is consolidating its recent losses as a subdued Australian Dollar (AUD) battles a softer US Dollar (USD) amid persistent geopolitical uncertainty.

Eurozone Business Climate declined to -0.38 in June from previous -0.26

Eurozone Services Sentiment came in at 3.2, above expectations (2.5) in June

Eurozone Economic Sentiment Indicator came in at 95, above expectations (94.3) in June

Eurozone Industrial Confidence registered at -7.7 above expectations (-7.8) in June

United Overseas Bank’s (UOB) Quek Ser Leang notes AUD/USD remains locked in a short-term range between 0.6880 and 0.6920 after a recent impulsive decline. Downward momentum is starting to ease, with a break above 0.6940 seen as signalling that the major 0.6835 support is out of reach.

Eurozone M3 Money Supply (3m) remains unchanged at 3% in May

Eurozone M3 Money Supply (YoY) came in at 3.2%, above forecasts (2.7%) in May

United Overseas Bank’s (UOB) Quek Ser Leang sees USD/JPY continuing to consolidate just below the 2024 high of 162.00, with intraday trading expected between 161.45 and 161.95.

Commerzbank’s Charlie Lay and Dr. Henry Hao note that the outlook for the Indian Rupee (INR) has brightened as lower Oil prices and renewed foreign capital inflows ease balance-of-payments pressures.

USD/CAD loses ground for the third successive day, trading around 1.4180 during the early European hours on Monday. The pair continues its losing streak after pulling back from 14-month highs.

The USD/JPY pair trades in a tight range around 161.80 during the European trading session on Monday. The pair struggles for a direction while market experts remain confident of Tokyo’s intervention to support the Japanese Yen (JPY).