The dollar initially extended its recovery from yesterday's North American session but relinquished most of those gains during the European morning. As North American traders resumed activities, the greenback weakened against most G10 currencies. The euro maintained crucial support around $1.0785, while the British pound did the same near $1.2675.

U.S. index futures are down by 0.4%-0.8%. Gold continues its downward trend, hitting $2322, a marginal new low since May 9. July WTI reached $80.60 yesterday, marking its highest level since May 1, but settled near its lows with continued selling pressure driving it down to nearly $78.75 today.

Asia Pacific Markets
Anticipation builds for tomorrow's economic data, expected to reveal a rise in Tokyo's CPI and stronger performance in industrial production and retail sales. The latest weekly portfolio flow report from the Ministry of Finance (MOF) indicates that, despite rising domestic interest rates, Japanese investors are still purchasing foreign assets.
The dollar climbed from around JPY156.60 to JPY157.70 over the past two sessions, reaching its highest level since the Bank of Japan's suspected intervention shortly after the last FOMC meeting on May 1.

The Australian dollar reversed from a four-day high near $0.6680 on Tuesday, dropping to almost $0.6610 yesterday. Follow-through selling brought it down to $0.6590 today, but it has since stabilized and returned to session highs near $0.6620.

European Markets
Attention is centered on the eurozone's preliminary estimate of May's CPI, due tomorrow, ahead of next week's ECB meeting where a rate cut is widely anticipated.
The euro traded up to nearly $1.0890 on Tuesday, which was slightly higher than expected, but it then reversed lower with continued selling driving it down to $1.08 yesterday in the North American afternoon. It settled below the 20-day moving average for the first time since May 1. Selling pressure during the Asia Pacific session extended the euro's losses to nearly the $1.0785 area.

Sterling reached $1.2680 during the Asia Pacific session and, like the euro, recovered in Europe.

American Markets
As Q2 nears its end, Q1 US data will have limited impact. Nonetheless, weaker consumption likely dragged down the already disappointing Q1 GDP further. Meanwhile, April's goods trade balance and inventory data will inform forecasts for Q2 GDP.

The US dollar extended its recovery that began on Tuesday after dipping to around CAD1.3615. It traded up to CAD1.3720 yesterday and further to CAD1.3735 today.