After a strong start earlier in the week, the US dollar is now undergoing consolidation, exhibiting a softer stance against most G10 currencies. The Dollar Index is on the verge of breaking a three-day winning streak. Sterling is a noteworthy exception, facing pressure due to the weakest retail sales report since 2021.

The North American equity rally from yesterday, which set a new record high for the NASDAQ 100, appears to have positively impacted Asia Pacific markets today, particularly with a 2.6% surge in Taiwan. Europe's Stoxx 600 is showing a modest increase after a nearly 0.6% rise yesterday. US index futures indicate a strong opening.

Gold, after testing $2000 midweek, is currently hovering around $2030. March WTI has risen above $74, reaching its highest level since Monday.

Asia Pacific
Japan released its national CPI for December earlier today, largely aligning with expectations outlined in the earlier Tokyo report this month.
The disappointing report led to a new low for the yen, with the dollar reaching JPY148.80, its highest level since late November. However, the dollar has since reversed lower and is poised to test yesterday's low.

Despite poor employment data, the Australian dollar was the top-performing G10 currency yesterday, gaining about 0.35% against the US dollar. Follow-through buying today has brought the Aussie close to Wednesday's high near $0.6595.

Europe
The UK experienced a consumer downturn at the end of last year, with December retail sales plummeting by 3.2%, far exceeding the median forecast of a 0.5% decline in Bloomberg's survey. This translates to a 2.4% year-over-year drop in retail sales.
Sterling remains lackluster, hovering within a two-cent range: $1.26-$1.28.

The euro is trading within a quarter-cent range below $1.0890 so far today. In the last two sessions, the euro has found support near the 200-day moving average, just below $1.0850.

America
The impact of US existing home sales on capital markets is usually limited. However, the recent decrease in mortgage rates may contribute to the stabilization of existing home sales, which experienced a continuous decline over the five months leading up to last October.

Today, Canada and Mexico are set to disclose their November retail sales data. Following a 0.7% rise in October, it is anticipated that Canadian retail sales remained flat in November.
The US dollar is currently trading below the support level established near CAD1.3480, formed in recent days and reaching a three-day low just below $1.3465.