The foreign exchange market has experienced a period of subdued activity, primarily due to the Lunar New Year holiday which has led to the closure of most Asian markets. This, combined with limited news out of Europe, has resulted in the dollar maintaining relatively tight ranges against the G10 currencies.
Notably, some Asia Pacific equity markets, such as those in Australia, India, and New Zealand, experienced slight declines today, while Europe's Stoxx 600 index is attempting to rebound from a recent three-day decline, showing a modest increase of less than 0.4%. US index futures are showing strength after reaching new record highs prior to the weekend.
Gold prices are displaying a slight downward bias, trading near $2020, while April WTI crude oil reached its high for the month near $77.15 before dipping slightly below $76 over the weekend. Key support for oil prices is seen around the $75 mark.

Asia Pacific
Top Bank of Japan officials have downplayed speculation regarding the central bank's potential move away from negative interest rates, dampening expectations of a tightening cycle.
With most Asian markets closed for the Lunar New Year holiday and China's mainland markets shuttered for the entire week, the dollar has inched closer to the JPY150 level against the yen, while the Australian dollar remains within a narrow range above $0.6510.

Europe
The economic calendar for the week is relatively light, with attention focused on Eurostat's publication of Q4 2023 GDP details.

The Swiss franc emerged as the strongest G10 currency in Q4 2023, appreciating by 8.8% against the dollar, though it has since retreated by approximately 3.9% this year.
The euro briefly touched a six-day high in thin Asia Pacific trading before retracing to around $1.0765 during early European sessions.

America
Tomorrow's release of CPI data is anticipated to be a significant factor in shaping the Federal Reserve's policy stance, with Chair Powell emphasizing the need for sustained evidence of inflation returning to its target level.

Meanwhile, the Canadian economy reported a decline in full-time jobs for the second consecutive month in January, accompanied by slower wage growth.
Despite a generally positive sentiment in the market, as evidenced by the S&P 500's recent record high, the Canadian dollar has struggled to gain momentum, with the greenback trading within a narrow range above CAD1.3450.