NZD/USD rose 0.50% intraday to 0.5824.

UK Prime Minister Starmer said he would fight any leadership challenge.

ING analyst Chris Turner said the upcoming Fed policy meeting is likely to be more important for EUR/USD than the ECB's Thursday rate decision. The ECB has signaled further hikes and markets price a July move, but Turner said markets have already priced an aggressive ECB tightening cycle and are reluctant to push that view further, keeping EUR/USD below 1.16. Markets also expect the Fed to hike later this year; unless the Fed rebuts that outlook at Wednesday's meeting, the dollar should remain firm.