The US dollar is mostly softer as North American trading picks up, with overall activity subdued and markets consolidating amid a limited news flow. Although US–Iranian discussions are scheduled to continue next week, participants remain cautious. Developments include policy steps by China’s central bank that effectively weaken the yuan, Denmark’s call for a snap election on March 24 to strengthen its stance regarding Greenland, and a UK by-election victory by the Greens in Greater Manchester, adding pressure on the Labour government.

Asia Pacific Markets

Most major Asia-Pacific equity markets advanced, with Tokyo climbing to fresh record highs. South Korea’s Kospi retreated about 1% on profit-taking, though it still posted a 7% weekly gain. Indian equities also fell more than 1%. The PBOC removed the 20% reserve requirement on FX forwards and eased rules to support offshore yuan liquidity, lifting the dollar above CNH6.8605. In Japan, Tokyo CPI edged up to 1.6%, retail sales rebounded 4.1%, and industrial output rose 2.2%, while the 10-year JGB yield declined.

European Markets

European equities are modestly firmer, with the Stoxx 600 on track for a fifth weekly rise, having declined only once since mid-December. Benchmark yields across the region are slightly lower. In currencies, the euro remains confined to a volatile $1.1740–$1.1860 band, hovering near its late-January downtrend line and close to the 20-day moving average. The ECB’s latest survey showed inflation expectations easing slightly for the year ahead to 2.6%, while the three-year outlook was unchanged.

American Markets

US equity futures are under pressure, with Nasdaq futures down over 1% and S&P futures off roughly half as much. The 10-year Treasury yield has slipped below 4% for the first time since late November, extending a weekly drop of nearly 10 basis points. The dollar trades within recent ranges against the yen and Canadian dollar, while sterling tests key technical levels. US producer price data are expected to show slower annual inflation, and Canada’s December GDP is seen edging up 0.1%.