US Dollar (USD) net short positions have decreased for the fourth consecutive week, driven by an increase in long positions. Euro (EUR) net long positions have decreased, driven by an increase in short positions.

The US Dollar (USD) starts the week on a firmer note, extending its modest recovery since Thursday, as easing global trade tensions lift investor sentiment.

The Canadian Dollar (CAD) remains under pressure on Monday, as the week began with the US Dollar (USD) regaining ground amid improving global trade sentiment.

United States Dallas Fed Manufacturing Business Index increased to 0.9 in July from previous -12.7

President Donald Trump renewed his criticism over the Federal Reserve’s helm ahead of its key meeting on Wednesday, where consensus largely anticipates rates will remain unchanged.

Silver (XAG/USD) is treading water near $38.00 on Monday, struggling to regain momentum after last week’s technical breakdown. Although prices are holding steady on the day, broader market sentiment is weighing on the metal.

Gold is trading in a narrow range on Monday, as economic data, easing trade tensions, and the fragility of the US Dollar continue to influence price action.

Mexico Trade Balance s/a, $: $0.595B (June) vs $-0.059B

Mexico Jobless Rate s.a: 2.6% (June) vs previous 2.7%

Mexico Jobless Rate remains unchanged at 2.7% in June

Mexico Trade Balance, $: $0.514B (June) vs previous $1.029B

It was buy the rumour, sell the fact for the EUR/USD pair, which accelerated its reversal from last week's lows on Monday's Early European session.

US President Trump and European Commission President Ursula von der Leyen agreed on Sunday on a framework very similar to the US-Japan trade deal signed last week.European products will face a15% levy, down from the 30% announced earlier in July, and, in exchange, the EU will invest EUR 600 billion

US Dollar (USD) is likely to trade in a range of 7.1530/7.1730 against Chinese Yuan (CNH). In the longer run, downward momentum is waning rapidly; a clear break above 7.1730 would indicate that 7.1295 is not coming into view, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The Euro (EUR) is weak, down 0.7% against the US Dollar (USD) and underperforming all of the G10 currencies with the exception of NZD, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Canadian Dollar (CAD) is soft, down 0.2% against the US Dollar (USD) and outperforming all of the G10 currencies as we head into Monday’s NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Pound Sterling (GBP) drops to near 1.3400 against the US Dollar (USD) during the European trading session on Monday. The GBP/USD pair falls as the US Dollar attracts bids after the announcement of a trade framework between the United States (US) and the European Union (EU).

There is room for US Dollar (USD) to rise further against Japanese Yen (JPU), but any advance is likely part of a 147.25/148.25 range.

The AUD/USD pair is down almost 0.6% to near the psychological level of 0.6500 during the European trading session on Monday.

The US Dollar (USD) is strong and starting off the week with broad gains across all of the G10 currencies as markets respond to the news of a US/EU trade deal agreed over the weekend, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

New Zealand Dollar (NZD) is likely to trade in a range of 0.6005/0.6040 against US Dollar (USD). In the longer run, upward momentum is beginning to slow; the odds of NZD rising to 0.6080 are diminishing, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The USD/CNY exchange rate has not moved much in recent weeks. Since the US and China agreed to a truce in the trade war on 11 June, the exchange rate has moved within a range of just 7.155 to 7.188, which is not even 0.5%.

Australian Dollar (AUD) is likely to consolidate in a range of 0.6555/0.6595 against US Dollar (USD). In the longer run, short-term momentum has eased slightly; AUD may still move to 0.6645, but the odds are not high, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The Russian central bank (CBR) cut its policy rate by 200bp to 18.0% last Friday, matching market expectations. This move followed recent disinflationary developments where the seasonally-adjusted annualised inflation rate already reached CBR’s 4% target.

As long as Pound Sterling (GBP) holds below 1.3480 against US Dollar (USD), it could test 1.3405; the major support at 1.3365 is unlikely to into view.

EUR/GBP edges lower by over 0.60% at the time of writting on Monday after breaking out of recent consolidation. Momentum indicators remain supportive, with the pair eyeing 0.8800 and higher levels, while 0.8645–0.8660 serves as near-term support, Société Générale's FX analysts note.

Markets have taken the news of a US-EU trade deal positively.

India Manufacturing Output up to 3.9% in June from previous 2.6%

India Cumulative Industrial Output rose from previous 1.8% to 2% in July

India Industrial Output came in at 1.5% below forecasts (2.4%) in June