Corrective forces are currently bolstering the US dollar against all G10 currencies. The euro's 0.5% decline marks its steepest drop in nearly two months, while the British pound has lost 0.3%, its largest decrease in almost three weeks. Meanwhile, equities are showing resilience. Gold, which recently approached its record high, has pulled back to nearly $2500, likely driven by profit-taking as the dollar strengthens. In the oil market, geopolitical factors and disruptions in Libyan and Colombian supply pushed October WTI crude to approximately $77.60 on Monday. However, after consolidating, it fell to around $75.40 and is currently hovering near $74.30.

Asia-Pacific Markets
Australia's July CPI came in at 3.5%, down from 3.8% in June and 4.0% in May, slightly exceeding the median projection in Bloomberg's survey. Despite this moderation, the Reserve Bank of Australia may maintain its hawkish stance until the Q3 CPI is released in late October, ahead of the November 5 policy meeting. Following the CPI report, the Australian dollar reached a new seven-month high at around $0.6815, though it has since stabilized between $0.6780 and $0.6800.
Despite strong 10-year yields, the US dollar struggled to regain momentum, falling short of the nearly JPY145.20 level it reached late in the Asian session yesterday.

European Markets
The growth in the Eurozone's money supply (M3) remained unchanged at 2.3% year-over-year in July, after a slight revision of June's figure from 2.2%. Tomorrow, the European Commission will release its monthly survey series, though these are not expected to significantly impact markets.
The euro traded within a narrow range yesterday, the tightest in a couple of weeks, finding support near $1.1150. The next key support level for the euro is around $1.11.
Meanwhile, sterling retreated nearly half a cent after reaching a new two-year high during early European trading, emphasizing the significance of the $1.3180-$1.3200 support zone.

American Markets
The US economic calendar is relatively light today, with the only notable release being the weekly mortgage applications estimate from the Mortgage Bankers Association (MBA). Tomorrow's agenda includes a second look at Q2 GDP, weekly jobless claims, and data on July's goods trade and wholesale and retail inventories.
The US dollar extended its recent losses against the Canadian dollar, hitting a five-month low near CAD1.3440 in late trading. This level held, allowing the US dollar to recover towards CAD1.3470, with initial resistance seen in the CAD1.3480-CAD1.3500 range.