The dollar remains in demand as the upside correction that began last week continues to gain traction. Currently, the greenback is trading above last week's highs against most G10 currencies, with the notable exception of the yen. Meanwhile, equity markets exhibit a downward bias, although Japanese and Chinese indices displayed mixed results. Gold is holding around the $2,500 level after stalling just below $2,532 in late August. October WTI crude oil experienced its third consecutive weekly decline last week, marking a drop in seven of the past eight weeks.

Asia Pacific Markets
In the Asia Pacific region, Bank of Japan Governor Ueda reiterated that if the economy evolves as expected, the central bank plans to further raise interest rates. Despite this, the dollar extended its recovery against the yen, advancing for the fourth consecutive session. It briefly touched JPY147.15 during the European afternoon yesterday, and after reaching JPY147.20 today, the dollar reversed course, dipping below yesterday's low.
Meanwhile, the Australian dollar faced pressure late last week, testing support around $0.6750. It briefly recovered to $0.6795 yesterday but has since retreated to $0.6730.

European Markets
In Europe, this week's economic calendar is relatively light, with August PMI data being the main focus. Final manufacturing PMI figures for the eurozone and the UK were released yesterday, and services and composite PMIs are due tomorrow. Despite this, market expectations remain unchanged, with the ECB anticipated to deliver a second rate cut on September 12.
The euro saw a slight decline, dipping to a new low near $1.1035, while sterling found temporary support above its pre-weekend low. However, gains were capped just above $1.3150, and it has since retreated to previous levels.

American Markets
In the U.S., economic data releases such as the manufacturing ISM, trade data, and August auto sales are likely to serve more as inputs for economists refining their Q3 GDP estimates rather than significantly influencing the market.
Canada is set to release its August manufacturing PMI today, but attention remains focused on tomorrow's Bank of Canada meeting. Despite this, the greenback's recovery continues, testing initial resistance around CAD1.3530.