The US dollar is experiencing widespread demand, marking its most impressive performance of the month. It has gained approximately 0.5% against the Canadian dollar to nearly 1.0% against the Australian dollar among the G10 currencies.

Concurrently, global equities are facing broad declines, with Europe's Stoxx 600 falling for the second consecutive session, hitting new lows for the month. US index futures are down by 0.5% to 0.75%.

The strengthening dollar and firmer interest rates are contributing to a decline in gold prices, currently hovering around $2040 after reaching above $2060 last week.
Meanwhile, February WTI is on an upward trend for the third straight session, registering a 0.5% increase today.

Asia Pacific
Japan's two-year note yield slipped into negative territory yesterday for the first time in nearly four months but returned to zero today.
The US dollar rebounded from its pre-weekend low of JPY144.35 to nearly JPY146 yesterday, with follow-through buying propelling it to around JPY146.75 in the European morning, marking its highest level since December 7.

The Australian dollar, on the other hand, has experienced a downward shift, testing support near $0.6600.

Europe
Preliminary estimates indicate that Germany, Europe's largest economy, contracted by 0.3% last year, slightly exceeding expectations. While detailed data is yet to be reported, it seems Q3 GDP was revised to a flat performance from -0.1%, and in Q4, the economy shrank by 0.3%.

In the UK, employment decreased by 24k in December, but the previous month's loss of 13k was revised to a gain of nearly 9k. Wage growth slowed in the three months through November.

The euro has maintained a wide range between approximately $1.0875 and $1.10 since January 5.
Sterling remains within a two-cent range ($1.26-$1.28) established in mid-December.

America
The US Congress is actively working to prevent a partial federal government shutdown at the week's end, considering a temporary spending bill that the new House Speaker initially avoided to secure his position.
This week's focus on US economic data is on Wednesday, with today's overshadowed by tomorrow's retail sales and industrial production reports, along with the Fed's Beige Book.

The US dollar reached a marginal new high for the year against the Canadian dollar yesterday, nearing CAD1.3450, driven higher and breaking through the 200-day moving average to CAD1.3500.