Following recent losses, the US dollar rebounded in North America yesterday, temporarily halting its sharp decline over the past few weeks. However, today's market action shows no additional gains, and a consolidative tone has emerged. G10 currencies, led by a recovery in the Australian and New Zealand dollars, are performing better today.
Meanwhile, China's Politburo is backing new measures and signaling the possibility of more to come.
Gold remains firm near yesterday’s record high. Oil prices have dropped significantly, with Saudi Arabia maintaining production cuts and positive developments in Libya further influencing the market.

Asia-Pacific Markets
Beijing continues to introduce new measures, with the Politburo announcing its intent to stabilize house prices and promote employment. This is seen as reinforcing a significant shift in China's policy direction.
In currency markets, the US dollar posted a bullish breakout against the Japanese yen, moving past Tuesday's trading range and breaking a month-long downtrend. It reached JPY144.75 and climbed further to JPY145.20, its highest level since early September.

European Markets
As expected, the Swiss National Bank became the third G10 central bank to deliver a third interest rate cut this year, lowering the deposit rate by 25 basis points to 1.00%.
The euro climbed to nearly $1.1215 yesterday, its highest level since July 2023, but profit-taking pulled it back to around $1.1120. Sterling saw more negative price action, reversing after hitting a two-and-a-half-year high and closing below Tuesday’s low. Despite this, it rebounded in late European trading, reaching new session highs near $1.3360.

American Markets
Revisions to Q2 US GDP are unlikely to have much impact as Q3 nears its close, with only minor changes expected. August’s durable goods orders report will be weighed down by a sharp decline in Boeing orders, and even excluding transportation and military sectors, only a modest increase is anticipated after July's small declines. Weekly jobless claims may draw more attention after last week’s drop to a four-month low.
In currency markets, the US dollar matched a six-month low against the Canadian dollar, reaching CAD1.3420 before rebounding to CAD1.3485, where it is holding steady today.