• Euro kicks in the week on the back foot on US Dollar recovery.
• Stocks in Europe open the week within tight ranges.
• EUR/USD slips back below the 1.0900 support on Monday.
• Final Manufacturing PMIs take centre stage later in the session.
• US ISM Manufacturing PMI will be in the limelight in NA trading hours.

At the start of the new trading week, the Euro (EUR) is under noticeable pressure, retracing part of Friday's strong gains and  forcing EUR/USD to drop below the key support level of 1.0900 the figure.

Meanwhile, the US Dollar (USD) is showing a better performance, with the USD Index (DXY) gaining renewed strength and surpassing the key level of 103.00, despite the lack of direction in US yields on Monday.

The potential future actions of the Federal Reserve and the European Central Bank (ECB) in normalizing their monetary policies remain a topic of ongoing debate amidst increasing speculation about an economic slowdown on both sides of the Atlantic. Currently, bets remain firm that there will be a 25 basis point rate increase by both central banks at their meetings in July.

Looking at the latest CFTC Positioning Report, net longs in EUR remained steady and reached a 2-week high of around 145K contracts in the week ending June 27, despite the spot reaching new monthly highs above 1.1000, which ultimately fizzled out due to the recovery in the risk-off trade and buying interest in the USD