Despite a broadly firmer US dollar, both the New Zealand dollar and the British pound have shown resilience. This strength follows a hawkish hold from the Reserve Bank of New Zealand (RBNZ) and a firmer than expected UK Consumer Price Index (CPI) reading. Conversely, the Swiss franc has weakened, hitting a new 12-month low against the euro.
Equities and bonds are predominantly weaker today, with US index futures trending lower.
Gold, after reaching new record highs on Monday, is consolidating and found support just above yesterday's low near $2,406. July WTI crude dipped below $77.50 for the third time this month but has since rebounded above $78.

Asia Pacific Markets
The RBNZ maintained its cash target rate at 5.50% but adopted a hawkish tone, discussing potential rate hikes, much like the Reserve Bank of Australia.
Softer US rates led to a brief dollar dip to around JPY155.85 during the North American session yesterday. However, the dollar quickly recovered to nearly JPY156.30 and is currently holding above JPY156.00.
Meanwhile, the Australian dollar breached the $0.6700 mark twice in the past four sessions but failed to sustain these levels by the end of trading.

European Markets
In Europe, the primary economic focus was the UK's April CPI, which rose by 0.3% month-over-month, surpassing the anticipated 0.1%. This increase, due to the base effect, brought the year-over-year rate down to 2.3% from 3.2%, marking the lowest annual rate since July 2021. Initially, this led to a rally in sterling, although the momentum was not sustained.
The euro, which had consolidated within a 15-tick range around $1.0860 yesterday, is now fluctuating within a broader range of $1.0835 to $1.0895 over the past four sessions, showing a trend of lower highs and lower lows.

American Markets
Existing home sales are not typically a major market mover, but the release of the Federal Open Market Committee (FOMC) minutes carries potential headline risk. It's worth noting that the two-year yield dropped from around 5% to almost 4.70% following the FOMC meeting and subsequent sessions. The Dollar Index, which was near its yearly high, fell to approximately 104.50. Recent remarks from Federal Reserve officials suggest a hawkish hold in the upcoming meeting, with the median projection moving from three rate cuts to fewer than two.