A robust job market update from the U.S. on Friday limited the dollar's decline in the wake of dovish comments from a Fed official.

The Canadian dollar strengthened against other major currencies in the European session on Tuesday, with Brent crude futures surging toward $100 a barrel on growing risks of a prolonged conflict in the Middle East.

China's exports registered a notable growth in August, reflecting strong foreign demand for hi-tech products, official data showed Tuesday. Exports increased 25.0 percent year-on-year in August, faster than the 23.9 percent growth in July, the General Administration of Customs said. The annual growth came in line with expectations.

Germany's exports decreased for the first time in six months in July but the trade surplus increased more than expected due to the notable fall in imports, official data showed on Tuesday. Exports decreased 0.8 percent on a monthly basis in July, in contrast to the 0.9 percent increase in June, Destatis said.

Japan's economy expanded more than initially estimated in the second quarter largely due to the upward revision to business investment, second estimate from the Cabinet Office showed Tuesday. Gross domestic product grew 1.4 percent on an annualized basis in the second quarter, which was revised up from the preliminary estimate of 1.1 percent.

The euro area economy expanded more than initially estimated in the second quarter, underpinned by exports and consumer spending, revised data from Eurostat showed Monday. Gross domestic product grew 0.6 percent sequentially after remaining flat in the first quarter. The second quarter growth was revised up from 0.4 percent estimated previously.

Eurozone investor sentiment rose for the fifth straight month in September, reaching its highest level since early 2022, survey data from the behavioral research institute Sentix showed Monday. The investor sentiment index climbed more-than-expected to 5.1 in September from 0.9 in August. The reading was seen at 2.1. The latest reading was the highest since February 2022.

Germany's industrial output declined at the fastest pace in almost a year in July, largely reflecting a multi-week production shutdown in the automotive industry, official data revealed Monday. Industrial production fell 1.1 percent on a monthly basis in July after remaining flat in June. This was the biggest decline since last August, when output was down 2.1 percent.

The Japanese yen strengthened against other major currencies in the European session on Monday.

UK house prices declined for the first time since late 2023 in August, data published by Lloyds Banking Group showed Monday. House prices dropped 0.4 percent on an annual basis in July, marking the first decrease since November 2023. The drop followed a marginal 0.1 percent rise in July.

Employment in the U.S. increased by far more than economists had expected in the month of August, according to a closely watched report released by the Labor Department on Friday. The report said non-farm payroll employment surged by 162,000 jobs in August are rising by an upwardly revised 21,000 jobs in July. Economists had expected employment to climb by 55,000 jobs.

Germany's factory orders grew more than expected in July, reflecting the strong order growth in the manufacture of ships, railway rolling stock and aircraft, official data revealed Friday. Factory orders increased 2.5 percent on a monthly basis in July but slower than the revised 3.7 percent expansion seen in June. Orders were expected to rise 0.3 percent.

Service sector growth in the U.S. accelerated more than expected in the month of August, the Institute for Supply Management revealed in a report released on Thursday. The ISM said its services PMI rose to 55.4 in August from 54.1 in July, with a reading above 50 indicating growth. Economists had expected the index to inch up to 54.3.

Reflecting a jump in imports and a slump in exports, the Commerce Department released a report on Thursday showing the U.S. trade deficit widened significantly in the month of July. The Commerce Department said the trade deficit surged to $88.6 billion in July from a revised $71.2 billion in June.

First-time claims for U.S. unemployment benefits crept slightly higher in the week ended August 29th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims edged up to 206,000, an increase of 2,000 from the previous week's revised level of 204,000.

The Swiss franc strengthened against most major currencies in the European session on Thursday, after Switzerland's consumer price inflation accelerated more-than-expected in August to the highest level in nearly two years.

The euro area private sector posted robust growth in August as the industrial economy gained momentum and services activity expanded for a second consecutive month, final survey data from S&P Global showed Thursday. The final composite output index posted 52.0 in August, unchanged from July's eight-month high and slightly down from the flash score of 52.1.

Switzerland's economy expanded at the fastest pace in nearly five years in the second quarter, the State Secretariat for Economic Affairs, or SECO said Thursday. Gross domestic product logged a quarterly growth of 1.5 percent, the fastest since the third quarter of 2021. The rate matched the preliminary estimate released in August and followed a growth of 0.5 percent in the first quarter.

China's services activity grew at a faster pace in August driven by the increase in new business and sustained growth in employment, survey results published by S&P Global showed Thursday. The headline RatingDog services Purchasing Managers' Index rose to 51.4 in August from 50.4 in July. The reading was expected to rise moderately to 50.6.

New orders for U.S. manufactured goods rebounded by more than expected in the month of July, according to a report released by the Commerce Department on Wednesday. The Commerce Department said factory orders increased by 0.9 percent in July after edging down by a revised 0.2 percent in June.

With the economy and inflation evolving broadly as forecast, the Bank of Canada on Wednesday announced its widely expected decision to once again leave interest rates unchanged.

A report released by payroll processor ADP on Wednesday showed private sector employment in the U.S. increased by less than expected in the month of August. ADP said private sector employment rose by 38,000 jobs in August after climbing by an upwardly revised 46,000 jobs in July. Economists had expected private sector employment to grow by 48,000 jobs.

The Japanese yen strengthened against other major currencies in the European session on Wednesday, as European stock markets traded higher due to concerns over rising oil prices and bond yields.

Australia's economy logged a stronger-than-expected growth in the second quarter, raising prospects of interest rate hikes by the Reserve Bank of Australia. Gross domestic product grew 2.1 percent from the previous year, the Australian Bureau of Statistics said Wednesday. This was slower than first quarter's 2.5 percent expansion but better than forecast of 1.8 percent.

The Reserve Bank of New Zealand delivered back-to-back rate hikes to contain inflation and also signaled further tightening. The Monetary Policy Committee, governed by Anna Breman, decided to raise the Official Cash Rate by 25 basis points to 2.75 percent.