The appointment of hedge fund manager Scott Bessent as the next US Treasury Secretary has sparked a surge in market enthusiasm. Investors embraced risk, driving a rally in global equities and a retreat in the US dollar. The euro leads G10 currencies with a nearly 0.75% gain, while the Canadian dollar lags, up just 0.15%. Equities rallied broadly outside China and Hong Kong, with January WTI crude consolidating between $70.40 and $71.50.

Asia-Pacific Markets
Bank of Japan Governor Ueda left the door open for another rate hike next month, while Tokyo’s November CPI is set to release at the week’s end. The dollar is consolidating against the yen. It's a potentially constructive pattern, rather than a reversal.
The Australian dollar rebounded from a four-day low near $0.6470 to an early high of $0.6550 but has since eased to $0.6500. Resistance now appears around $0.6525.

European Markets
A quiet economic calendar this week puts the spotlight on the preliminary November CPI report. The euro initially dropped over 1.5 cents following weak flash PMI data but recovered above $1.05 after the Treasury pick news. It is now trading near session highs.
Similarly, sterling rebounded after falling below $1.2490 last week, climbing above $1.26 in early dollar-selling activity.

American Markets
The holiday-shortened week in the US brings Fed surveys, house prices, and new home sales data, though these are unlikely to significantly move markets. Later in the week, the PCE deflator will refine Q4 GDP expectations, which are forecasted between 2.0% and 2.5%. Attention shifts to the November jobs report due December 6.
In Canada, the economic calendar also begins slowly.