The G7 finance and central bankers’ meeting concludes today. The United States is applying pressure on its allies through the threat of increased tariffs on European Union vehicles, contingent upon the approval of the trade agreement by July 4, leading to strained diplomatic interactions. Officials in Greenland have indicated that the United States’ desire to assert control and ownership over the territory remains evident. The US waiver on Russian oil signifies a unilateral action that has encountered resistance from various European institutions. The euro experienced a reversal of its five-day decline yesterday, following a brief extension of losses that dipped slightly below $1.1610. It rebounded to $1.1660 in late trading following President Trump’s indication that, at the request of Gulf allies, he consented to cancel today’s strike on Iran.

Last Friday’s peak was around 1.1675. The lack of persistent demand for the euro resulted in a depreciation of the single currency, which fell back to $1.1615 in Europe. Support is noted within the range of $1.1580 to $1.1600. Options totaling approximately 2.5 billion euros at an exchange rate of $1.1650 are scheduled to expire today. The dollar strengthened for the sixth consecutive session against the Japanese yen yesterday. The present performance corresponds with the longest rally recorded this year. The dollar has seen a modest uptick today, even in light of the unexpectedly robust Japanese Q1 GDP figures. The yen saw a decrease in seven out of eight sessions prior to the Bank of Japan’s intervention on April 30. It is noteworthy that the dollar had also experienced a decline for three consecutive weeks up to April 17, before registering a modest recovery of just under 0.5% in the week prior to the intervention. The dollar was exchanged at just above JPY159.15 during European trading hours, maintaining a narrow band of slightly less than half a yen. Options totaling around $635 million at JPY159 are scheduled to expire today.

Sterling recorded an uptick for the first time in six sessions yesterday. The asset encountered support around 1.33 before rebounding to 1.3450. Sterling demonstrated a bullish outside up day, trading across the range established last Friday and ultimately closing above its previous high. The roughly 0.75% rise signifies the peak level recorded over the last two and a half weeks. In a singular, decisive action, sterling surpassed the (38.2%) retracement of the previous week’s decline (~$1.3435). Sterling is situated at the upper boundary of the range noted yesterday. It is situated near the $1.3400 mark in light of the underwhelming labor market report. Resistance is presently noted at $1.3420. The Canadian dollar exhibits indications of stabilization. As we commence this week’s trading, the Canadian dollar has faced a decline in 10 of the preceding 11 sessions.

It observed a modest uptick yesterday. The greenback demonstrated muted trading within the parameters set last Friday (approximately CAD1.3715 to CAD1.3765). However, the Canadian dollar is experiencing renewed pressure today. The greenback is gradually surpassing the peak recorded last week. Resistance is noted within the CAD1.3800-15 range. The Australian dollar persisted in its decline from the prior week, settling around $0.7120, which represents a new monthly low. The asset demonstrated a recovery, achieving a session peak of approximately $0.7185 during the North American morning yesterday. Sellers drove it slightly beyond $0.7110 today. A breach of the 0.7100 level could result in a subsequent target of 0.7055. Options valued at nearly A$1 billion, featuring strike prices ranging from $0.7135 to $0.7150, are scheduled to expire today.