European currencies opened the week on a softer note, primarily due to disappointing preliminary PMI data. Despite this, the Australian dollar made modest gains, leading the G10 currencies. This comes even as Australia's PMI figures also missed expectations ahead of the central bank's meeting tomorrow.
Meanwhile, US index futures are showing strength. Gold hit a new all-time high, briefly crossing $2,631, but has since retreated in European trading, hovering around $2,620. November WTI crude oil posted a 4.8% gain last week, marking its strongest weekly performance since February, driven by the Fed's 50 basis point rate cut and rising tensions in the Middle East. Today, crude is trading steady within the $70.70-$71.70 range.

Asia Pacific Markets
Japan’s markets were closed for the Autumn Equinox, with the country set to release its preliminary September PMI tomorrow. Later this week, Tokyo’s September CPI will be in focus, scheduled for release on September 27.
The US 10-year Treasury yield recovery has also bolstered the dollar against the yen. After dipping below JPY140 last Monday, the dollar surged to nearly JPY144.50 by the weekend, reaching a two-and-a-half-week high, a level it maintained today. Support was found in early European trading around JPY143.45.
The Australian dollar continues to trade around the $0.6800 level for the fourth consecutive session.

European Markets
Despite today's underwhelming PMI data, expectations for the European Central Bank (ECB) and Bank of England (BoE) rate cuts remain unchanged. The eurozone’s manufacturing sector continues to struggle, but the euro has maintained a higher range of $1.10-$1.12 over the last 4-5 weeks. After reaching the upper end of this range last week, upward momentum seems to have stalled.
The BoE’s decision to hold rates steady, which was made prior to last week’s Federal Open Market Committee (FOMC) announcement, reflects a cautious approach despite robust retail sales data. Sterling hit new two-year highs near $1.3340 before the weekend but has since pulled back to around $1.3250 to start the week.

American Markets
The Fed’s decision on whether to implement another 50 basis point cut in November or December won’t be influenced by today’s PMI release. In fact, market participants have increasingly given more weight to the ISM figures in recent months. The key economic data to watch this week will be August's personal income, consumption, and the PCE deflator.
Last week saw the US dollar lose ground against the Canadian dollar, snapping a five-day rally. The weakness in the US dollar, rather than Canadian strength, caused this reversal. Despite these losses, the US dollar has established a base near CAD1.3540 and is currently consolidating within a narrow range.