The US dollar traded with a mildly softer tone against most major currencies as investors continued to assess geopolitical uncertainty. Apart from gains in the New Zealand dollar following its recent rate increase and slight weakness in the Canadian dollar, movements across the G10 complex remained limited. Oil prices stabilized after a sharp advance, with both WTI and Brent crude holding within the previous day’s trading ranges. The latest Federal Reserve minutes largely confirmed existing expectations, highlighting differing views among policymakers. Political developments in the UK and France also remained in focus, while China’s central bank set the yuan reference rate at a new three-year low.
Asia Pacific Markets
Asian markets generally advanced after a recovery in US technology shares encouraged risk appetite, although Hong Kong, Taiwan, and Australia lagged. China’s CSI 300 outperformed with a gain of about 2.5%. The yen remained close to the multi-decade lows reached recently, with the dollar trading below JPY162.60 after approaching JPY162.70 the previous day. In China, inflation data showed producer prices rising 4.1% from a year earlier, the strongest pace since mid-2022, while consumer inflation eased to 1.0%. The offshore yuan strengthened modestly after the dollar briefly climbed above CNH6.81, and India’s rupee recovered part of its previous decline.
European Markets
European equities attempted to end a three-session decline, with the Stoxx 600 posting modest gains in late morning trading. The euro continued to move within the range established after last week’s US employment report, approaching $1.1450 while remaining near its 20-day moving average. Sterling extended its recent strength, reaching its highest level since mid-June and rising above its 200-day moving average. Political developments remained important as the UK Labour leadership contest officially began and French politics stayed unsettled following renewed presidential ambitions from Marine Le Pen. Germany reported a stronger-than-expected May trade surplus as imports declined sharply.
American Markets
US equity futures pointed higher after the Nasdaq rebounded from losses exceeding 1% in the previous session. Treasury yields remained elevated, with the 10-year yield near 4.57% after recently approaching 4.60%. Gold advanced toward $4,118, while silver recovered but remained below the $60 level. Crude oil consolidated after a rally of more than 10% over two sessions, with WTI holding above its 20-day moving average for the first time since June. Investors also awaited US existing home sales and weekly jobless claims data. In Mexico, inflation figures and central bank minutes were expected to provide further guidance for markets.