Before the quarterly refunding announcement by the US Treasury and the conclusion of the FOMC meeting, the dollar is showing strength against all G10 currencies.

The Nikkei rebounded from initial losses, closing approximately 0.6% higher. However, Hong Kong and mainland shares experienced a decline of more than 1%. Europe's Stoxx 600 is extending its rally for the sixth consecutive session, though today's gains seem fragile. US index futures are down, with Nasdaq 100 futures off by almost 1.3%.

Gold remains relatively stable around $2037, within a narrow range of $2033-$2040.50. March WTI bounced back from below $76 to settle near $77.80 yesterday but is currently on the defensive below $77 today.

Asia Pacific
Japan reported an unexpected 2.9% decline in December retail sales after a 1.1% increase in November, diverging significantly from the median forecast of a 0.2% gain in Bloomberg's survey.
Australia reported weaker-than-expected December Q4 23 CPI.

The dollar held support near JPY147, and US long-term rates remained firm. The greenback recovered to new session highs near midday in New York, just below JPY 148.
The Australian dollar reached two-week highs near $0.6625 yesterday, but the breakout lacked conviction.

Europe
Ahead of tomorrow's aggregate report, Spain and France revealed that their EU harmonized measure of January CPI eased by 0.2%, resulting in year-over-year rates of 3.5% (from 3.3%) and 3.4% (from 4.1%), respectively.
German states reported sharp declines in the year-over-year rate, with the national figure due shortly.

The euro remains within the range seen on Monday, trading below $1.08 for the first time since mid-December.
Sterling was sold to $1.2640 yesterday, its lowest level in nearly two weeks, recovering to almost $1.2700 but spending little time above that level today.

America
The focus is on the Federal Reserve. The market is attentive not to the Fed's actions, as it is expected to remain unchanged today, but rather to what Fed Chair Powell communicates and how the market interprets it.

The US dollar seems to have formed a bearish double top pattern against the Canadian dollar. Canada is set to report November GDP today, and if economists are correct (median in Bloomberg's survey), with the economy growing by 0.1%, it would mark the first monthly expansion since last May.