As the week draws to a close, the US dollar is showing signs of quietude. Across the G10 currencies, trading activity remains within the ranges established yesterday. The standout performers poised for gains are the Scandis, with the Australian dollar potentially joining them with some upward momentum. On the flip side, the Japanese yen and Swiss franc have lagged behind, experiencing declines of 0.65% to 0.75% this week.
Gold is continuing its modest recovery trajectory after dipping to $1984 following the US CPI report earlier this week, now hovering around $2007. Meanwhile, April WTI is consolidating after witnessing significant volatility over the past two days, with a trading range roughly between $75.50 and $78.50. Despite this, it's showing a slight uptick for the week, following a notable 6.2% rally the previous week.

Asia Pacific
Yesterday's report on Japanese GDP for Q4 2023 has somewhat overshadowed the significance of the tertiary sector index for December. However, it's worth noting that the index rebounded, putting an end to a three-month decline (~8.8% annualized), the worst since the first half of 2020 amidst the peak of the Covid pandemic.
The dollar remains relatively stable today, trading within a narrow range of approximately JPY149.85 to JPY150.35.

Despite a disappointing Australian employment report, the Australian dollar managed to gain nearly 0.5% yesterday, reaching close to $0.6530 in North America. It has maintained levels above $0.6505 today and is testing yesterday's highs during the European session.

Europe
The UK concludes a week filled with economic data on a positive note, particularly with January retail sales surging by 3.5% in terms of volume, marking the most significant increase since early 2021 during the initial stages of the Covid recovery. However, overall sales volumes slipped by 0.2% over the three months through January compared to the previous three-month period.
Sterling is trading within a range slightly above $1.2575 today.
The euro, after reaching $1.0785 yesterday, encountered resistance near the week's high set on Monday around $1.0805. Today, it's experiencing a narrow trading range of a fifth of a cent.

America
Expectations are for US January housing starts to show a decline for the second consecutive month, marking the fourth consecutive January with such a trend. While the data are seasonally adjusted, there might still be residual seasonal factors at play.
Additionally, January producer prices are set to be released.

The Canadian dollar saw a substantial climb of almost 0.6% yesterday, marking its most significant gain of the year. This was attributed to a weaker greenback and a prevailing risk-on sentiment, as evidenced by the rally in the S&P 500, which managed to close the gap from Tuesday's sharp downturn.