The dollar is retreating from yesterday's gains, which were driven by the rise in U.S. rates following the preliminary PMI, hitting its best level in two years. Today, the dollar is trading within narrow ranges but is softer against nearly all G10 currencies. The Swiss franc and Japanese yen are notable laggards. Despite a significant miss in UK retail sales, sterling has stabilized after its first decline in five sessions yesterday.
Asia-Pacific and European equities have continued to sell off following yesterday's U.S. market downturn.
Gold has steadied after experiencing its two worst sessions of the year, falling around 3.8%. July WTI is extending its losing streak to a fifth consecutive session today.

Asia-Pacific Markets
Japan released its national April CPI earlier today, showing a year-over-year increase that moderated to 2.5% from 2.7%. The core measure, excluding fresh food, eased to 2.2% from 2.6%, marking a three-month low. Tokyo's May CPI reading will be reported next week, along with Japan's April employment, retail sales, and industrial production data.
Australia will also report April retail sales and the monthly CPI next week.

The continued rise in U.S. rates pushed the greenback to JPY157.20 against the yen in North America yesterday, its highest level since May 1. The dollar is in a tight range today.
The Australian dollar fell below its 20-day moving average, closing below it for the first time this month, which is slightly above $0.6610 today.

European Markets
The eurozone has a light economic schedule for the upcoming week, with attention focused on the results of its trade investigations into China's practices and the upcoming European Parliament elections (June 6-9).
After today's retail sales report, the UK's economic calendar will also quiet down. UK markets will be closed on Monday for the Spring Bank Holiday, as will U.S. markets for Memorial Day.

The euro settled at a seven-day low just above $1.08 yesterday but has steadied today, reaching the $1.0835 area this morning in Europe.
Sterling ended its four-day streak of closing above $1.27 yesterday, marking the first session in nine days that it dipped below the previous session's low.

American Markets
Today's highlight in the U.S. is the preliminary durable goods report. Recall that March's initially strong headline gain of 2.6% was revised down to a still solid 0.9%, but excluding aircraft and defense orders, it turned into a 0.2% decline from a 0.1% gain. Shipments were also revised to show a contraction. The University of Michigan's preliminary consumer confidence survey will be reported as well.

Yesterday, the Canadian dollar was the weakest among G10 currencies, losing nearly 0.3% and falling to its lowest level since May 8. So far today, it remains confined to a tight range.