France's private sector output moved closer to stabilization in July as the Olympic Games fueled economic activity, flash survey data compiled by S&P Global showed on Wednesday. The HCOB composite output index posted 49.5 in July, up from 48.2 in June. The score was expected to climb moderately to 48.9. A score above the threshold 50.0 indicates expansion.

German consumer confidence is set to improve moderately in August on improving income prospects and willingness to buy, a survey showed on Wednesday. The consumer confidence index improved to -18.4 in August from revised -21.6 in July, the survey published jointly by GfK and the Nuremberg Institute for Market Decisions showed.

Sri Lanka central bank lowered its policy rates unexpectedly on Wednesday as inflation is expected to remain below the target over coming months. The Central Bank of Sri Lanka decided to reduce the Standing Deposit Facility Rate by 25 basis points to 8.25 percent and the Standing Lending Facility Rate to 9.25 percent.

The bank had reduced rates by a cumulative 625 basis points since 2023.

The commodity currencies such as Australia, the New Zealand and the Canadian dollars weakened against other major currencies in the Asian session on Wednesday, due to a sharp drop in commodity prices.

Flash Purchasing Managers' survey results from the euro area and the UK are the top economic news due on Wednesday. At 2.00 am ET, the market research group GfK is scheduled to issue Germany's consumer sentiment survey data. The forward-looking consumer confidence index is forecast to rise to -21 in August from -21.8 in July.

The U.S. dollar gained some ground against its major counterparts on Tuesday as traders continued to closely follow the developments on the political front, and awaited some key economic data, including GDP report and inflation readings for more clarity about the Federal Reserve's interest rate trajectory.

Euro area consumer confidence strengthened for a sixth month in a row in July as households look forward to, yet another interest rate cut from the European Central Bank in September. The flash consumer confidence index rose to -13.0 from -14.0 in June, survey data from the European Commission showed Tuesday. Economists had expected a reading of -13.0.

With prices reaching a new record high, the National Association of Realtors released a report on Tuesday showing existing home sales in the U.S. plunged by more than expected in the month of June. NAR said existing home sales dove by 5.4 percent to an annual rate of 3.89 million in June after falling by 0.7 percent to a rate of 4.11 million in May.

Sticking to the commitment of fiscal consolidation, India's Finance Minister Nirmala Sitharaman unveiled a budget that aims to provide impetus to job creation, start-ups and small enterprises, while proposals for raising the tax rates on capital gains damped market sentiment and send the rupee to a record low. The government lowered the fiscal deficit target to 4.9 percent of GDP.

The commodity currencies such as Australia, the New Zealand and the Canadian dollars weakened against their major currencies in the Asian session on Tuesday, due to a sharp drop in commodity prices.

The U.S. dollar turned in a weak performance on Monday amid political uncertainty in the U.S. after President Joe Biden decided to drop out of the presidential race and endorsed his Vice President Kamala Harris as the Democratic candidate for the post.

The U.S. Dollar rallied against major currencies during the week ended July 19 as dramatic developments unfolded in the U.S. political scene.

The Antipodean currencies such as the Australia and the New Zealand dollars weakened against their major currencies in the Asian session on Monday, as Asian stocks fell amid uncertainties about the outcome of the upcoming U.S. presidential election and a surprise rate cut by China's central bank also weighed on the currencies.

China lowered its short-term policy rates as well as benchmark lending rates on Monday, in order to prop up growth. The People's Bank of China cut the interest rate on seven-day reverse repos to 1.7 percent from 1.8 percent. The action was aimed to strengthen counter-cyclical adjustments to better support the real economy, the central bank said.

The U.S. dollar gained some ground on Friday on safe-haven appeal as risk sentiment waned amid deepening Sino-U.S. trade tensions, uncertainty about the outcome of the upcoming U.S. presidential election, and rising concerns about the outlook for China's growth.

Malaysia's economy posted its fastest growth in six quarters with strong support from services and manufacturing sectors, official data revealed Friday. Gross domestic product registered an annual growth of 5.8 percent in the second quarter after rising 4.2 percent in the previous quarter, advance estimate from the Department of Statistics revealed on Friday.

The bigger-than-expected UK public sector net borrowing in June highlights the challenges faced by the new government. Public sector net borrowing decreased GBP 3.2 billion from the last year to GBP 14.5 billion in June, marking the lowest June borrowing since 2019. However, the latest figure was GBP 2.9 billion higher than the GBP 11.6 billion forecast by the OBR.

Despite an improvement in consumer sentiment, UK retail sales logged a notable decline in June amid election uncertainty and poor weather, data showed Friday. Retail sales decreased 1.2 percent month-on-month in June, in contrast to the 2.9 percent increase posted in May, the Office for National Statistics said. Sales were expected to log a moderate 0.4 percent fall.

Japan's core inflation rose for the second straight month in June, keeping alive hopes of another interest rate hike. Core inflation that excludes fresh food edged up to 2.6 percent in June from 2.5 percent in May. However, this was slightly below economists' forecast of 2.7 percent, the Ministry of Internal Affairs and Communications said.

Public sector finance and retail sales reports from the UK and current account from the euro area are due on Friday, headlining a light day for the European economic news. At 2.00 am ET, the Office for National Statistics releases UK public sector net borrowing and retail sales figures.

The U.S. dollar firmed against its major counterparts on Thursday as bond yields moved up, and the Euro fell after the European Central Bank left its key interest rates unchanged.

The Conference Board released a report on Thursday showing a modest decrease by its reading on leading U.S. economic indicators in the month of June. The report said the leading economic index edged down by 0.2 percent in June after falling by a revised 0.4 percent in May. Economists had expected the leading economic index to dip by 0.3 percent.

After reporting a slowdown in the pace of regional manufacturing growth in the previous month, the Federal Reserve Bank of Philadelphia released a report on Thursday showing the pace of growth reaccelerated by much more than expected in the month of July. The Philly Fed said its diffusion index for current general activity jumped to 13.9 in July from 1.3 in June.

The Federal Reserve Bank of Philadelphia released a report on Thursday showing growth by regional manufacturing was more widespread in the month of July. The Philly Fed said its diffusion index for current general activity jumped to 13.9 in July from 1.3 in June.

A report released by the Labor Department on Thursday showed first-time claims for U.S. unemployment benefits climbed by much more than expected in the week ended July 13th. The Labor Department said initial jobless claims rose to 243,000, an increase of 20,000 from the previous week's revised level of 223,000. Economists had expected initial jobless claims to edge up to 230,000.