Sterling fell in European trade against dollar for the third straight session to near five-week lows, as PM Boris Johnson announces new spending plans to support the UK economy. 

GBP/USD fell 0.3% to 1.2259, after closing down 0.3% yesterday, the second loss in a row, marking five-week lows at 1.2251. 

UK PM Johnson said this is the moment Britain applies the Roosevelt theory., including launching massive public spending and infrastructure sending, which supported the US economy during the great depression in the thirties. 

However there were concerns about how Johnson's government will pay for these plans, expected to increase debt levels to levels unseen since the financial crisis of 2008. 

Added risks include the UK's failure to reach a deal with the EU before the transition period ends on December 31. 

Earlier data showed the UK economy shrank by 2.2% in the first quarter of the year, the worst pace since the first quarter of 2009. 

Asian stock indices opened the second session of the week and the last session of June higher following data from major Asian economies and amid hopes for some recovery in the second half from the coronavirus pandemic, while stocks still marked a 7% loss in the first half of the year. 

Earlier Chinese data showed the manufacturing PMI up to 50.9 from 50.6 in May, while the services PMI rose to 54.4 from 53.6. 

Earlier Japanese data showed industrial output fell 8.4% in May, compared to a 9.8% drop in April, and missing estimates of a 5.6% drop.

Japan's unemployment rose to 2.9% from 2.6% in April, while housing starts fell 12.3% in May. 

The World Health Organization warned "the worst hasn't come yet" in the pandemic, as it continues to accelerate and spread. 

Federal Reserve Chair Jerome Powell will testify, along with Treasury Secretary Steven Mnuchin, before the House Financial Services Committee, in Washington DC.

In an earlier testimony last week, Powell warned of permanent job losses while expecting no full recovery from the pandemic before confidence is restored. 

Japan's TOPEX rallied 1.13%, while Nikkei 225 rallied 1.67% to 22,361. 

China's CSI 300 powered up 1.08%, while Shanghai climbed 0.58% to 2,978. 

Hong Kong's Hang Seng rose 0.81%, while South Korea's KOSPI powered up 1.74% to 2,129. 

New Zealand's NZX 50 rose 1.76%, while Australia's S&P/ASX 200 gained 1.39% to 5,896. 

Gold futures tilted lower in Asian trade off June 24 highs as the dollar index resumes its march higher after a one-day hiatus, following Chinese data and ahead of US data and testimonies by Fed Chair Jerome Powell and US treasury secretary Steven Mnuchin.

As of 04:58 GMT, gold futures due in August shed 0.03% to $1,783.70 an ounce, while the dollar index rose 0.11% to 97.50. 

Earlier Chinese data showed the manufacturing PMI up to 50.9 from 50.6 in May, while the services PMI rose to 54.4 from 53.6. 

From the US, housing prices are expected up 3.8% in May, while the Chicago PMI is expected at 45.0. 

An index tracking US consumer sentiment is expected up to 91.6 from 86.6.

Federal Reserve Bank of New York President John Williams is due to speak about the US recession and policy response at a webinar hosted by the Institute for International Finance. 

Federal Reserve Governor Lael Brainard will also speak about the Dodd-Frank Act at a webinar co-hosted by the Brookings Institution and the University of Michigan.

Federal Reserve Bank of Minneapolis President Neel Kashkari will participate in a virtual panel discussion about racial inequalities and social justice hosted by the National Association of Business Economics.

 Federal Reserve Chair Jerome Powell will testify, along with Treasury Secretary Steven Mnuchin, before the House Financial Services Committee, in Washington DC.

In an earlier testimony last week, Powell warned of permanent job losses while expecting no full recovery from the pandemic before confidence is restored. 

Congress has put up $3 trillion so far in stimulus for households and small businesses, while the Fed launched support programs surpassing a trillion dollars to support household and corporate credit markets. 

The World Health Organization warned "the worst hasn't come yet" in the pandemic, as it continues to accelerate and spread. 

USD/JPY tilted higher in Asian trade off May 7 lows following earlier data from Japan and ahead of US data and testimonies by Fed Chair Jerome Powell and US treasury secretary Steven Mnuchin.

As of 05:53 GMT, USD/JPY rose 0.17% to 107.76, with an intraday high at 107.79. 

Earlier Japanese data showed industrial output fell 8.4% in May, compared to a 9.8% drop in April, and missing estimates of a 5.6% drop.

Japan's unemployment rose to 2.9% from 2.6% in April, while housing starts fell 12.3% in May. 

From the US, housing prices are expected up 3.8% in May, while the Chicago PMI is expected at 45.0. 

An index tracking US consumer sentiment is expected up to 91.6 from 86.6.

Federal Reserve Bank of New York President John Williams is due to speak about the US recession and policy response at a webinar hosted by the Institute for International Finance. 

Federal Reserve Governor Lael Brainard will also speak about the Dodd-Frank Act at a webinar co-hosted by the Brookings Institution and the University of Michigan.

Federal Reserve Bank of Minneapolis President Neel Kashkari will participate in a virtual panel discussion about racial inequalities and social justice hosted by the National Association of Business Economics.

 Federal Reserve Chair Jerome Powell will testify, along with Treasury Secretary Steven Mnuchin, before the House Financial Services Committee, in Washington DC.

In an earlier testimony last week, Powell warned of permanent job losses while expecting no full recovery from the pandemic before confidence is restored. 

Congress has put up $3 trillion so far in stimulus for households and small businesses, while the Fed launched support programs surpassing a trillion dollars to support household and corporate credit markets. 

The World Health Organization warned "the worst hasn't come yet" in the pandemic, as it continues to accelerate and spread.