In today's G10 currency markets, the Antipodeans and sterling are leading. The New Zealand dollar is the strongest, despite the anticipation of the central bank's first rate cut tomorrow. The Australian dollar climbed to a near three-week high around $0.6610.
Meanwhile, gold, which set a record-high settlement just below $2473 yesterday, has softened slightly to hover around $2460.
Concerns over escalating Middle East tensions boosted September WTI by 4.2%, marking its fifth consecutive increase and reaching approximately $80.15 yesterday, the highest level since July 19. Today, it is consolidating just below $80.

Asia Pacific Markets
The Japanese market reopened after the Mountain Day holiday, with the Topix surging 2.8% and bonds trading firmer. The US dollar tested initial support near JPY147.00 and has dipped slightly below JPY148 in the European morning, remaining within yesterday’s range.
The Australian dollar stayed mostly within its pre-weekend range. Despite brief penetrations, the Aussie struggled to settle above $0.6600, though it managed to extend gains marginally to nearly $0.6610 today.

European Markets
The UK kicked off a busy week of high-frequency economic data with employment figures, revealing unexpected resilience in the labor market. The three-month unemployment rate ticked down to 4.2% in June from 4.4%, unchanged from June 2023.
Sterling reached a six-day high just below $1.2815 and is hovering around the $1.28 level. The euro hit session lows near $1.0915 following a disappointing ZEW survey but continues to trade within last Thursday's range.

American Markets
US producer prices are expected to have increased by 0.2% last month, both at the headline and core levels. Fed Chair Powell has emphasized that while multiple labor market metrics are important, the headline PCE deflator remains the best measure for the price stability mandate. Fed funds futures now indicate just over a 50% chance of a 50 bp cut next month, the lowest probability since August 1.
The US dollar has found near-term support around CAD1.3720.