The euro surged to $1.0775, marking its strongest performance since June 13. Meanwhile, the yen remains subdued following the Tankan survey, which showed minimal change but indicated an increase in capital expenditure plans. Excluding the yen and Swiss franc, the dollar is generally trading with a softer bias. Equities in both the Asia-Pacific region and Europe began the new month on a positive trajectory, while U.S. index futures are slightly mixed. Gold is experiencing quiet trading, having ended last month just below $2327. August WTI crude oil is testing the $82 mark.

Asia-Pacific Markets
The latest Tankan Survey from Japan showed little change from the previous quarter. While sentiment among large manufacturers improved slightly, there was no progress for large non-manufacturers or smaller businesses.
The minutes from the June RBA meetings will be released tomorrow, with Australia set to report May retail sales on Wednesday. Wage growth and income tax cuts are expected to drive consumption in the coming months. Additionally, Australia will release May merchandise trade data at the end of the week.
The dollar has remained above JPY 160 since breaking that barrier last week and is currently trading within Friday's range.
The Australian dollar also fluctuated on both sides of Thursday’s range before settling within it.

European Markets
In the first round of the French elections, Le Pen's National Rally secured a plurality of votes. However, even with a favorable outcome in the second round this weekend, an outright majority appears unlikely. The markets reacted positively to the election results, with French stocks rallying approximately 1.4%, and the French 10-year bond yield premium over Germany narrowing by about five basis points. These developments have propelled the euro to $1.0775, its highest level since June 12, the day after the release of the U.S. May CPI data. During early European trading, the euro found intraday support around $1.0750.
Sterling is also trading stronger but remains below $1.2690.

American Markets
North American market participants are focused on both the upcoming holiday on Thursday and Friday's jobs report. Today, the ISM manufacturing index will be closely watched, as it holds more significance than the final PMI manufacturing survey, which saw a preliminary increase to 51.7 from 51.3.
Canada will also release its employment report at the end of the week, which is the highlight for Canadian markets. Note that Canadian markets are closed today in observance of Canada Day.