The dollar is exhibiting strength with mostly higher rates and lower equities as market participants unwind the moves made in the holiday-thin markets at the end of last year. This unwinding process appears to be ongoing, with geopolitical tensions remaining elevated. Interestingly, despite high tensions, gold and oil are both trading lower.
Among G10 currencies, sterling has shown resilience but remains nearly flat.

Gold is experiencing its fourth consecutive session of decline, potentially marking the longest losing streak in over two months.
Following a dramatic downside reversal in February WTI, the market has seen continued selling, pushing it to its lowest level since December 13, at around $69.25.

Asia Pacific
Japanese markets reopen tomorrow after grappling with the aftermath of an earthquake and airplane accident. The final December manufacturing PMI is anticipated to be consistent with the preliminary 47.7, matching the low for 2023. China's Caixin services and composite PMI are also due.

The BRICS welcomed five new members, including Saudi Arabia, UAE, Iran, Egypt, and Ethiopia, with Argentina declining the invitation.

The dollar, after reaching yesterday's high near JPY142.20, consolidated below JPY142.00 during most of the North American session and extended gains to about JPY142.80 today.
The Australian dollar experienced a breakdown in the North American session, settling at a nine-day low near $0.6765. Follow-through selling today has further weakened the Aussie, approaching support near $0.6745.

Europe
Today, economic calendars for the eurozone and the UK are quiet, but tomorrow brings the final December PMI readings. The UK will also report consumer credit and mortgage lending figures for November. The eurozone concludes the week with the preliminary December CPI, where the base effect suggests a countertrend increase.

The euro, having peaked on December 28 near $1.1140, pulled back to almost $1.0940 yesterday and today has fallen to about $1.0925, breaching the 20-day moving average.
Sterling broke down and settled below its 20-day moving average for the first time in three weeks, potentially acting as resistance now.

America
Yesterday's unexpected downward revision to the US December manufacturing PMI raises concerns about downside risks with today's manufacturing ISM.
Job openings in the US fell to 8.73 million in October from nearly 9.5 million in August.
December auto sales are expected to be released throughout the day, with aggregate, seasonally adjusted annualized sales anticipated to bounce back after two months of declines.
Closer scrutiny may be given to the FOMC minutes from last month's meeting.

The US dollar recorded its most substantial single-day advance against the Canadian dollar since mid-October, rising by about 0.65% yesterday.