The dollar extended its weaker trend from the pre-weekend and yesterday's sessions, finding some support during the European morning. Despite this, as North American markets open, the dollar remains mostly softer against G10 currencies, with a slight firming against the Japanese yen.
Gold is trading within yesterday's range after dropping nearly 3.4% last week, marking its most significant weekly loss since last September. July WTI crude oil hit a two-month low before the weekend but recovered to close near $77.70. The recovery has continued, pushing prices up to $79 today.

Asia-Pacific Markets
Australia's April retail sales rose by only 0.1%, underperforming expectations and falling below the average monthly increase in Q1. The country will report April's CPI tomorrow, anticipated to return to 3.4% from 3.5%, the lowest since November 2021. The RBA minutes reveal that the central bank was still contemplating a rate hike earlier this month. Despite the Australian dollar declining in the first four sessions last week, it rebounded ahead of the weekend and continued its recovery today.

In Japan, service producer prices accelerated to 2.8% from a revised 2.4%, marking a nine-year high. The dollar has been trading within the JPY155.55 to JPY157.20 range since last Thursday and remains stable ahead of the North American session, just below JPY157.

European Markets
Europe is experiencing a modest recovery. Both the eurozone and UK economies contracted in Q3 and Q4 of 2023 but expanded in Q1 2024, with the eurozone growing by 0.3% and the UK by 0.6%. This recovery appears driven by inventory, construction, and trade.
The euro hit a six-day high near $1.0880, approaching its two-month high from May 16. The British pound rebounded from a five-day low before the weekend, settling firmly above $1.2735. This upward trend continued, reaching almost $1.2785 today, a new two-month high.

American Markets
Market sentiment has largely dismissed the possibility of a Fed rate cut in June or July. Key economic data this week include another look at Q1 GDP, with expectations of a downward revision due to weaker consumption.
The US dollar tested a six-day low against the Canadian dollar today, nearing CAD1.3615.