The euro has been sold down to nearly $1.0670, while the sterling has dropped below $1.2700. The dollar briefly surged above JPY158 for the first time since the late April intervention but has now eased to just above JPY157. Among the G10 currencies, only the Swiss franc is holding steady against the strengthening dollar.
Gold is consolidating within yesterday's range, and August WTI crude oil is also within yesterday's range, poised to test this week's high near $79, marking its best week since early April.

Asia Pacific Markets
Bank of Japan Governor Ueda indicated that a decision on a possible rate hike will be made next month. However, market expectations for a hike have diminished, leading to a drop in Japan's 10-year bond yield by about three basis points, totaling a 10 bp decline for the week. Japan's April tertiary industry index, expected to rebound after a 2.4% decline in March, will be reported early Monday.
The Reserve Bank of Australia meets next Tuesday, with no significant policy changes anticipated.

Following Ueda's comments, the dollar retreated to around JPY157.25 and is hovering around JPY157 in late morning European trading.
The Australian dollar remained confined within a narrow range around $0.6650 and is now approaching $0.6600.

European Markets
European markets are unsettled by French President Macron's decision to call for a snap legislative election after his alliance's poor performance in the EU Parliament elections. With the potential for the left alliance to push Macron's party and allies to third place, the euro has fallen to $1.0680, its lowest level since May 2.
Sterling has also unwound its US-CPI driven gains, dropping from around $1.2860 to about $1.2695.

American Markets
The jump in US weekly initial jobless claims and softer-than-expected PPI, following slower CPI data, sent US yields lower and temporarily weakened the dollar. Today's focus includes import/export prices and the preliminary June University of Michigan survey. With the conclusion of the FOMC meeting, Fed-speak resumes with Cleveland Fed President Mester, followed by Chicago's Goolsbee and Governor Cook, who is seen as one of the more hawkish members, speaking at an evening event.
The US dollar traded within a narrow 25-pip range around CAD1.3740 yesterday and remains within this range today, pressing the upper end in European trading.