Joblessness in Germany rose in June but at a slower than expected pace, official figures revealed on Tuesday, as activity in the biggest economy in the euro area remains sluggish.

Construction spending in the U.S. decreased by slightly more than expected in the month of May, according to a report released by the Commerce Department on Tuesday.

The Institute for Supply Management released a report on Tuesday showing a modest increase by its reading on U.S. manufacturing activity in the month of June.

Euro area inflation rose slightly to hit the European Central Bank's 2 percent target in June on slower fall in energy prices and the rise in services inflation, flash estimate from Eurostat showed on Tuesday. Annual inflation climbed to 2.0 percent in June from 1.9 percent in May. The rate reached the inflation target and also matched economists' expectations.

Eurozone manufacturing activity contracted at a slower pace in June as output showed a sustained expansion and total new work stabilized ending a 37-month period of decline, final survey data from S&P Global showed on Tuesday. The HCOB manufacturing Purchasing Managers' Index posted 49.5 in June, up from 49.4 in May. This was the highest score since August 2022.

The Japanese yen strengthened against other major currencies in the European session on Tuesday, following the Bank of Japan's Tankan survey indicating that business sentiment among major Japanese firms has improved slightly, which increased the likelihood of additional rate hikes by the Japanese central bank.

China's manufacturing sector returned to growth in June on higher new orders and a renewed rise in production, survey data from S&P Global showed on Tuesday. The Caixin manufacturing Purchasing Managers' Index rose to 50.4 in June from 48.3 in May. A reading above 50.0 indicates expansion. The survey showed that the growth was driven by a renewed expansion in manufacturing output.

The U.S. dollar continued to trade lower against other major currencies in the Asian session on Tuesday, as markets anticipated a vote on U.S. President Donald Trump's historic tax and spending bill.

UK house prices logged a slower growth in June reflecting weaker demand after the increase in stamp duty at the start of April, data from the Nationwide Building Society showed on Tuesday. House prices advanced 2.1 percent year-on-year in June, slower than the 3.5 percent increase seen in May. House price growth was expected to moderate to 3.3 percent.

Flash inflation and final factory Purchasing Managers' survey results from the euro area and unemployment from Germany are top economic news due on Tuesday. At 2.00 am ET, UK Nationwide house price data is due. Economists forecast house prices to grow 3.3 percent on a yearly basis, slower than the 3.5 percent increase in May.

A report released by MNI Indicators on Monday showed a slight decrease by its reading on Chicago-area business activity in the month of June.

The U.S. dollar plunged against major currencies during the week ended June 27 amidst easing geopolitical tensions as well as renewed hopes of trade deals between the U.S. and its trade partners.

UK mortgage approvals increased for the first time so far this year in May, suggesting an improvement in housing market activity, figures from the Bank of England showed Monday. The net mortgage approvals for house purchases that indicate future borrowing rose by more-than-expected 2,400 to 63,000 in May. This was the first increase since December 2024.

Lending to euro area households grew the most in two years in May and overall private sector credit growth remained stable, data from the European Central Bank revealed on Monday. Adjusted loans to households increased 2.0 percent year-on-year in May, the strongest since May 2023, when it was up 2.1 percent. Meanwhile, loans to businesses grew 2.5 percent from a year ago.

The British pound weakened against other major currencies in the European session on Monday amid increased risk-off mood, as investors eyed progress in global trade negotiations ahead of the impending July 9 deadline for U.S. reciprocal tariffs.

The UK economy expanded at a stronger pace in the first quarter as previously estimated on robust services and industrial production, revised data from the Office for National Statistics showed on Monday. Real gross domestic product grew 0.7 percent, unrevised from the first estimate. This followed 0.1 percent expansion in the fourth quarter and marked the fastest growth since the first quarter.

The safe haven Japanese yen strengthened against other major currencies in the pre-European session on Monday, as traders remain cautious amid renewed optimism about new trade deals after U.S. President Donald Trump indicated he does not think he will need to extend the July 9 deadline for countries to secure trade deals with the US. Trump also indicated the U.S. had signed an agreement with China.

Flash inflation and retail sales from Germany and revised GDP and mortgage approvals from the UK are due on Monday, headlining a hectic day for the European economic news. At 2.00 am ET, Destatis publishes Germany's import prices and retail sales figures. Retail sales are forecast to grow 0.5 percent month-on-month in May, in contrast to the 1.1 percent fall in April.

A report released by the University of Michigan on Friday showed consumer sentiment in the U.S. improved by slightly more than previously estimated in the month of June. The University of Michigan said its consumer sentiment index for June was upwardly revised to 60.7 from a preliminary reading of 60.5.

While the Commerce Department released a closely watched report on Friday showing consumer prices in the U.S. crept up in line with expectations in the month of May, the report also showed core consumer prices rose by slightly more than expected. The report said the personal consumption expenditures (PCE) price index inched up by 0.1 percent in May, matching the uptick seen in April.

Eurozone economic sentiment weakened unexpectedly in June primarily driven by reduced confidence in industry and retail trade, a monthly survey data from the European Commission showed on Friday. The economic confidence index fell to 94.0 in June from 94.8 in May. The score was forecast to rise to 95.1. The industrial confidence index posted -12.0 in June, down from -10.4 a month ago.

France's inflation accelerated more than expected in June largely due to higher services costs but the overall rate remained below the 2 percent target, preliminary estimate from the statistical office INSEE showed on Friday. Consumer prices increased 0.9 percent year-on-year in June, faster than the 0.7 percent rise in May. The rate was forecast to remain unchanged at 0.7 percent.

Economic confidence from the euro area and flash inflation from France are due on Friday, headlining a busy day for the European economic news. At 2.00 am ET, producer prices from Sweden and retail sales from Norway are due. At 2.45 am ET, France's statistical office INSEE is scheduled to issue flash consumer prices, producer prices and consumer spending data.

The National Association of Realtors released a report on Thursday showing an unexpected rebound by pending home sales in the U.S. in the month of May. NAR said its pending home sales index jumped by 1.8 percent to 72.6 in May after tumbling by 6.1 percent to a revised 71.3 in April.

Revised data released by the Commerce Department on Thursday showed the U.S. economy shrank by more than previously estimated in the first quarter of 2025. The Commerce Department said real gross domestic product fell by 0.5 percent in the first quarter compared to the previously reported 0.2 percent dip. Economists had expected the decrease by GDP to be unrevised.