The dollar exhibited strength into the month-end but has softened today. The Scandinavian and dollar-bloc currencies are leading with gains ranging from 0.2% to 0.5%. In addition to crucial data like US manufacturing PMI, ISM surveys, and construction spending, market participants are eagerly awaiting comments from Fed Chair Powell. His statements will likely be pivotal, especially in terms of his stance on the significant rate cuts.

Hong Kong and South Korea witnessed equity losses exceeding 1% today. Europe's Stoxx 600 is on an upward trajectory, marking its third consecutive gain and the fourth weekly increase in the past five weeks. US index futures are narrowly mixed.

Gold remains firm, consolidating below the $2052 mark observed earlier in the week.
The market response to OPEC+ voluntary cuts remains lukewarm, and January WTI is hovering around $76 per barrel.

Asia Pacific
Japan's employment report showed marginal improvement, with the unemployment rate slipping to 2.5% in November from 2.6%, and the job-to-applicant ratio firming to 1.30 from 1.29. The focus next week will be on Tokyo's November CPI, labor earnings, and household consumption. Tokyo's headline inflation is expected to ease to 3.0% from 3.2%, and the core rate to 2.4% from 2.7%.
A notable rise in US 10-year yields assisted the dollar's recovery from JPY146.85 to JPY148.50 yesterday, consolidating within yesterday's range today.

On December 5, the Australian central bank announces its decision, with Governor Bullock keeping the possibility of another hike open. The next day, Q3 GDP is expected to have grown by about 0.3%, following a 0.4% expansion in Q2.
After reaching a high near $0.6675 on Wednesday, the Australian dollar experienced a modest decline, holding in a narrow range today between ~$0.6600 and $0.6635.

Europe
Next week, the eurozone reports October retail sales. Germany reported a surprisingly robust 1.1% rise in October retail sales yesterday, with the September series loss revised to -0.1% from -0.8%. However, France reported a 0.9% decline in consumer spending in October (against an expected 0.2% decline), and September's 0.2% gain was revised away.
On December 7, the eurozone revises Q3 GDP, with concerns that it may have contracted more than the initially estimated 0.1%.
The euro, consolidating a two-day decline, recovered to almost $1.0915 today. There are two potential risks for the euro today: Fed Chair Powell's possible push against "premature" easing of financial conditions and S&P's review of French credit.

Sterling's upward momentum stalled this week after peaking near three-month highs on Wednesday. Testing support near $1.2600 yesterday, it held near $1.2620 today but encountered resistance near $1.2680.

America
Initial jobless claims edged higher to 218k, while continuing claims saw a significant increase of 86k to 1.927 million, the highest in three years.
Today features the final manufacturing PMI and ISM manufacturing, both indicating contraction. Construction spending is expanding but at a moderating pace. Chicago Fed President Goolsbee is scheduled to speak today, but all eyes are on Fed Chair Powell, who speaks at 11:00 ET and later with Cook at 2:00 pm ET.

The Canadian dollar held its ground against the recovering greenback and was the only G10 currency to rise against the dollar, albeit marginally.