The dollar shows a slight downward trend, retracting some recent gains. Sterling has returned to trading within the $1.26-$1.28 range, a territory it occupied from mid-December until the beginning of this week. Despite a significant drop in German industrial output (-1.6%), the euro displays a modest strengthening. Conversely, the Japanese yen, Swiss franc, and Norwegian krone exhibit a softer stance.

Gold maintains a subdued trading pattern, remaining within Monday's range of approximately $2015-$2042.
March WTI experiences a slight uptick today, reaching a three-day peak near $74 after hitting a low of around $71.40 on Monday.

Asia Pacific
Tomorrow brings the release of China's January CPI and PPI data, with deflationary pressures expected to persist. China's consumer prices continue to be weighed down by food costs.
India's central bank is also convening tomorrow, with steady policy anticipated.

Following the significant drop in the US 10-year yield since last week's FOMC meeting, the dollar weakened against the yen yesterday, testing lows near JPY147.70, a level not seen since the initial reaction to the US jobs data.
The Australian dollar briefly surpassed Monday's high, corresponding to the (38.2%) retracement level of the recent sell-off post-US employment data. Today, the Aussie tested the next retracement level (50%) near $0.6540 before retracing.

Europe
Despite Germany's robust 8.9% surge in factory orders in December—the largest since May-June 2020—industrial output failed to rise, marking a monthly decline not seen since April last year. The unexpected 1.6% drop underscores the sector's struggles, with overall output hitting its lowest point since June 2020.
France reported a trade deficit of 6.8 billion euros for December.

Once again, traders in the Asia Pacific region pushed the euro higher, nearing $1.0775. Resistance is anticipated in the $1.0790-$1.0810 range.
Sterling re-entered its previous range yesterday but closed slightly below. Continued buying momentum pushed it to around $1.2635 in today's European session.

America
Both the US and Canada are set to release their December trade figures today, with the trade balance expected to have minimal impact.
Canada will report January jobs data on Friday, potentially drawing more market attention than December's trade balance, particularly after a loss of 23.5k full-time positions in December, the most significant decline since May 2023.