The bustling week of central bank meetings has kicked off with a relatively subdued start. The dollar is experiencing a narrow mix in quiet trading, with the exception being its performance against the Japanese yen. There appears to be some exaggeration of the risks associated with a potential move by the Bank of Japan next week, leading to a continuation of the dollar's recovery that commenced prior to the weekend.

Earlier today, nearly all major equity markets in the Asia Pacific region saw positive advancements. However, Europe's Stoxx 600 is trading slightly lower as the week begins. US index futures are also showing a modest decline.

Gold is retracing its gains from last week and is hovering around $1992, nearing a two-week low after reaching a record high last week.
Additionally, January WTI experienced a sell-off after reaching a three-day high near $71.80.

Asia Pacific
In the Asia Pacific region, Japan reported a 3.4% increase in the preliminary estimate for November machine tool orders, primarily driven by a 6.1% month-over-month gain in foreign orders. Domestic orders, on the other hand, fell by 2.9%, following a significant 25.3% drop in October.
Notably, the dollar has regained much of its losses from last Thursday's dramatic drop, reaching nearly JPY146.60 today.

The Australian dollar, after posting an outside up day on December 7, has come back slightly lower but may find support near the December 7 low.

Europe
Looking at Europe, four major European central banks are scheduled to meet on Thursday: the European Central Bank, the Bank of England, the Swiss National Bank, and the Norges Bank (Norway's central bank). No significant policy changes are expected from these central banks.

The euro, which fell to approximately $1.0725 after the US jobs data at the end of last week, is currently trading in a range just above $1.0750 in a quiet market.
Sterling has fluctuated between approximately $1.2525 and $1.2575.

America
Turning to the American markets, the November employment report suggests a softening of the labor market, challenging the soft-landing narrative. Private sector job growth is slowing, with a two-month average of 118k, the second slowest of the year.

The dollar, which had a four-day rally against the Canadian dollar, paused ahead of the weekend and found support in the CAD1.3550 area. Initial resistance is expected near CAD1.3620, corresponding to last week's high.