The recent surge in US long-term interest rates has bolstered the greenback, keeping it strong against most G10 currencies. Among these, the Canadian dollar stands out as the best performer, maintaining a near-flat position.
Market attention is focused on the ECB meeting in Sintra, where Fed Chair Powell is scheduled to speak later today.
Equity markets are mostly trending lower, although Japan's Topix has reached new highs, and the Nikkei hit its best level in three months.
Gold remains subdued within the narrow range established at the end of last week. August WTI crude oil has continued its rally, reaching $84, a level it hasn't closed above in almost three months.

Asia Pacific Markets
In the Bank of Japan's Tankan survey, manufacturers provided their exchange rate outlook, predicting the dollar to average JPY144.77 in the fiscal year starting April 1.
Meanwhile the significant rise in the US 10-year Treasury yield for the second consecutive session may have spurred the greenback's gains, with the dollar reaching nearly JPY161.75.
The Australian dollar approached last week's high, falling just short of $0.6690 before pulling back yesterday. The Aussie has not traded above $0.6700 since June 12 and has not closed above this level since January. Conversely, it has only closed below $0.6600 once in nearly two months.

European Markets
Following the release of June CPI figures from the four largest eurozone economies, the aggregate results were unsurprising. The 0.2% month-over-month increase met expectations, reducing the year-over-year rate to 2.5% from 2.6%.
Despite a disappointing US ISM survey, the euro struggled to gain traction until it neared $1.0720, eventually slipping to $1.0710 today.
Sterling lost its earlier gains as US 10-year yields rose, reaching a new session low near $1.2630. Further declines pushed it to nearly $1.2615, just above last week's low.

American Markets
In this holiday-shortened week, key updates on the US labor market are anticipated, with today's highlights being the May JOLTS report and June auto sales.
The US dollar is currently consolidating in a narrow range below CAD1.3755 but appears poised to advance in North American trading today.