The US dollar is showing weakness against most G10 currencies, with the notable exception of the Japanese yen. Leading the pack is the British pound, which has climbed to new two-year highs, nearing $1.3250. Despite this, the overall tone of the dollar remains consolidative. The current move appears to be more of a pause than a reversal, especially when looking at the dollar-bloc currencies.
In equity markets, Asia-Pacific stocks were mixed, while Europe’s Stoxx 600 index is trading stronger, approaching its best levels in a month. US index futures are also edging higher.
Meanwhile, gold is slightly under pressure but continues to hold above $2,500 for the day. September WTI crude is giving back some of yesterday’s gains after a nearly 3.5% rally, driven by rising tensions in the Middle East.

Asia Pacific Markets

Market-moving news in the Asia-Pacific region was relatively sparse, with the most notable development being a minor deceleration in Japan’s service producer price index, which slowed to 2.8% in July. The dollar saw some recovery in early Asia-Pacific trading, bouncing from yesterday’s lows near JPY143.45 to a high above JPY144.60 in the North American session. Today, it has reached almost JPY145.20.
The Australian dollar, meanwhile, recovered to approach last week’s high of $0.6800, giving a bullish signal in its consolidation pattern.

European Markets

In Europe, the eurozone's M3 money supply data for July is set to be released tomorrow. While the money supply continues to recover, its impact on the markets has diminished.
The euro traded in a narrow range below $1.12 yesterday and remains in an even tighter range below $1.1180 today, reflecting a lack of near-term conviction. In contrast, sterling has shown more strength. After trading within a tight range in North America, between $1.3180 and $1.3210, it has hit a new two-year high near $1.3250 during the European morning session.

American Markets

In the US, headline durable goods orders were boosted by a surge in Boeing orders (72 vs. 14 previously) and military capital equipment orders (up 1.2%). However, when excluding aircraft and defense, durable goods orders slipped by 0.1%.
Today's economic calendar includes house prices, the Conference Board’s consumer confidence index, and surveys from the Richmond and Dallas Federal Reserve banks.