Today, both stocks and bonds are under pressure, while the dollar has slightly strengthened, continuing its recovery from yesterday. Most G10 currencies are down, although the Japanese yen has bounced back after hitting its lowest level since May 1.
Gold remains under pressure but is holding above yesterday's low near $2340. July WTI crude oil surged yesterday, reaching nearly $80.30, its highest level since May 1. It climbed further to almost $80.60 today but has not closed above $80 this month.

Asia Pacific Markets
In a surprise move, Australia's April CPI rose to 3.6% from 3.5% in March, after remaining at 3.4% from December 2023 through February 2024. Tomorrow, Australia will release secondary economic reports, including April building approvals and private sector credit.
The Australian dollar peaked at $0.6680 yesterday but reversed lower, hitting new session lows at $0.6645 during the North American afternoon. Minor follow-through selling occurred today.
The increase in US yields, following a poor reception to the two- and five-year notes, helped push the dollar above JPY157, reaching JPY157.40 today.

European Markets
The eurozone's preliminary May CPI estimate, a key data point ahead of the ECB's June 6 meeting, will be released before the weekend. Although April retail sales will also be reported a few hours before the ECB's statement, the CPI data is more critical.
The euro stalled yesterday just below the month's high of $1.0895 set on May 16, closing near $1.0855. Continued selling pressure today saw it test the $1.0830 area in early European trading before recovering to nearly $1.0850.
Sterling briefly topped $1.28 for the first time since March 21 but faced significant selling, pushing it to new session lows.

American Markets
Today's agenda includes the Richmond Fed and Dallas Fed Services Activity surveys, with the Federal Reserve's Beige Book set to be released late in the session in preparation for the June 12 FOMC meeting.
The dollar continued its recovery, reaching nearly CAD1.3675, with nearby resistance in the CAD1.3680-CAD1.3700 range.