The US dollar is experiencing mixed consolidation today as markets anticipate the upcoming employment report. The British pound, which has been a focal point of this week's market activity, has stabilized but remains down nearly 1% for the week, making it the worst-performing G10 currency. In contrast, the Canadian dollar is the only G10 currency that has strengthened against the greenback.
Equities are trading under pressure, while gold is extending its rally for a fourth consecutive session, reaching approximately $2680, its highest level since mid-December. Meanwhile, February WTI crude oil has surged over 2%, hitting a three-month high near $75.80.

Asia-Pacific Markets
Japanese officials have managed to slow the yen's recent decline. On December 20, the dollar peaked near JPY158, its highest level since July. This week, it reached approximately JPY158.55 as the US 10-year Treasury yield climbed to nearly 4.73%, its highest level since April. The exchange rate's next moves will likely depend on the US Treasury's response to the employment data.
Reports that the Bank of Japan (BOJ) is considering raising its inflation forecasts, driven by higher rice prices and yen weakness, have sparked speculation about a potential rate hike.

European Markets
The euro has remained within last week’s trading range, hovering around $1.0310 after settling slightly below this level last week.
The British pound, which has faced a challenging few days, has stabilized today. Earlier this week, sterling hit a high near $1.2575 on Wednesday and a low of $1.2240 yesterday. Today, it has held above $1.2265 and is trading around $1.23 during European market hours. Additionally, the UK's 10-year yield reached above 4.92%, its highest level since 2008.

American Markets
The Dollar Index has been capped near 109.40 over the past two sessions, a trend that continues today. Markets appear cautious ahead of the December employment report, which is expected to influence price action going into the weekend. Since January, US nonfarm payrolls have alternated between stronger and weaker results on a monthly basis. The market's reaction to the report will likely set the tone for the dollar and broader financial markets.