China's recent comprehensive stimulus measures have sparked optimism in global markets today. The US dollar has softened, with only the yen and Swiss franc among G10 currencies unable to capitalize. Emerging market currencies are mostly trading stronger, while gold remains steady after hitting a record high of nearly $2,940. China's stimulus actions also buoyed crude oil prices, pushing November WTI up by approximately 2.5%, surpassing $72 per barrel for the first time since early September.

Asia Pacific Markets
Last Friday, the People's Bank of China signaled a notable shift by setting a significantly lower dollar fix. Yesterday, it took further action with a 10-basis point cut in the 14-day reverse repo rate. Today, China ramped up its efforts by cutting the reserve requirement ratio by 0.50% and reducing the 7-day repo rate by 20 basis points, bringing it to 1.5%. Additionally, the PBOC introduced an 800 billion yuan ($110 billion) support package for the stock market, with potential for further expansion if necessary. The central bank also hinted at the possibility of establishing a state-backed stabilization fund, a tool it had previously used in 2015. In a bid to shore up the property sector, new housing market support measures were also unveiled.
Meanwhile, the Reserve Bank of Australia held its interest rates steady, as anticipated, reiterating that it is too early to consider rate cuts.

European Markets
This week's focal point in Europe is the anticipated rate cuts by Sweden's Riksbank and the Swiss National Bank, both expected tomorrow.
The euro has been oscillating between $1.10 and $1.12 for over a month. After disappointing PMI data pushed the euro below $1.1085 yesterday, it rebounded to around $1.1140 by the end of the European session. Today, the euro remains firm within a narrow range of $1.1100-$1.1145.
Sterling, on the other hand, posted a bullish outside day, trading on both sides of last Friday’s range before closing above Friday's high. This propelled it to a new two-year peak near $1.3360, with some follow-through buying today lifting it further to $1.3380.

American Markets
Key US economic data releases are concentrated on Thursday and Friday this week. On Thursday, the Q2 GDP revision will be in focus, while August's durable goods orders and the weekly initial jobless claims report could point in different directions. Durable goods orders are expected to show a sharp decline, weighed down by a drop in Boeing orders, following a 9.8% surge in July. Meanwhile, jobless claims may attract more attention after last week’s report showed claims falling to their lowest level since May.
In Canada, the Canadian dollar rose by over 0.2% yesterday. Although the US dollar fell below CAD1.35 for the first time in three weeks, it rebounded to settle around CAD1.3540. Today, the US dollar is testing the CAD1.3500 level again during European trading hours.