The euro edged up as traders looked to the European Central Bank's policy meeting on Thursday for when and how it would wind up its bond purchases and eventually lift interest rates from current deep negative levels.
Investors are raising their bets that the European Central Bank will signal at a policy meeting later this week a tapering down of its 2.55 trillion euro bond-buying programme as early as September, following a flurry of hawkish comments by officials last week.
Investors had viewed the latter - effectively a plan for a parallel currency in Italy - as a first step to exiting the euro.
The Group of Seven summit in Canada laid bare a deep rift between Trump and other leaders as the US president, who left the G7 meeting early, tweeted he was backing out of the joint communique and lashed out against Canadian Prime Minister Justin Trudeau.
The yield on the benchmark 10-year JGB note, which moves inversely to its price, traded 1/2 basis point higher at 0.04 percent, the yield on the long-term 30-year note rose 1 basis point higher at 0.73 percent and the yield on short-term 2-year hovered around -0.12 percent by 05:00 GMT. "While that may not change much on the ground, markets could take it positively", he said.
Trumped lashed out at Canada and Europe over the USA trade deficit after he arrived in Singapore, where he is due to hold a historic meeting with North Korean leader Kim Jong Un on Tuesday.
The Canadian dollar, which has been dogged by fears that Trump may scrap the North American Free Trade Agreement (NAFTA), fell 0.4 percent to C$1.2982.
Investors are ready for more volatility before a confluence of big events this week, including the Trump-Kim summit, policy reviews by the world's three major central banks, and a United Kingdom parliamentary Brexit bill vote. The euro has been 1.1805, 1.1810, bouncing back and forth.
The market's focus is on the Fed's projection on the future path of interest rates.
The Bank of Japan is expected to stick to the current super-easy policy after a two-day meeting that ends on Friday, which would keep the yen's gains in check.
"I would think forecast of four rate hikes this year would be already priced in".
A Sovereign Money initiative barring commercial banks from electronically creating money when they lend was rejected by more than three quarters of voters in a referendum on Sunday.