The US dollar is holding strong against all G10 currencies, except for sterling, which remains relatively unchanged following a labor market report that revealed elevated earnings and a rise in the unemployment rate to its highest level since September 2021. Also the dollar hit a new six-day high against the Japanese yen, nearing JPY157.40.
Meanwhile, US index futures are showing slight declines. Gold is consolidating within a narrow range, and July WTI is stable after a nearly 3% rally yesterday, its largest of the year, driven by favorable supply and demand conditions ahead of the IEA report tomorrow.

Asia Pacific Markets
With no new high-frequency data, markets are largely focused on tomorrow's FOMC meeting and Friday's BOJ meeting. China is set to release CPI and PPI data tomorrow, with expectations of a slight easing in disinflationary and deflationary pressures.
The dollar's range against the yen was established before the North American session yesterday, between JPY156.50 and JPY157.20, and edged up to around JPY157.40 today.
The Australian dollar recovered from one-month lows in the Asia Pacific ($0.6575) to session highs in North America yesterday ($0.6610), forming a bullish hammer candlestick. However, there has been no follow-through buying, and the Aussie remains within a narrow range.

European Markets
The aftermath of the European Parliament election continues to unfold, but the UK is the focus today and tomorrow due to high-frequency economic data. The UK reported the latest jobs data today, and April GDP figures are due tomorrow. Unemployment rose to a new high for the year of 4.4% in the three months through April.
The euro briefly dipped below $1.0735 yesterday before recovering to almost mid-range in North American trading, but it remains below previous support at around $1.0785 and the 200-day moving average, failing to rise above $1.0775 today.
Sterling recovered from a dip below $1.2690 to a little above $1.2735, also forming a bullish hammer candlestick. However, follow-through buying has been minimal.

American Markets
Today is relatively quiet in terms of the US economic calendar. However, tomorrow features two of the three key market events: CPI and the Federal Reserve meeting. The employment report has already been released, and despite mixed details, the overall takeaway is that the economy appeared to perform better in May than in April.