Recent news indicating expansion rather than contraction in the Japanese economy during Q4 23 has bolstered expectations of potential rate hikes as early as next week. This positive sentiment is underpinning the yen, albeit within a narrow range from the pre-weekend levels. While the dollar is showing some softness against the euro, Swiss franc, and Canadian dollar, it's exhibiting slight firmness against the Antipodeans and Scandis. Sterling remains within a narrow range but with a downward bias.
Gold is currently consolidating after nearing $2200 before the weekend, with support holding above $2176 today.
April WTI experienced a dip to a nine-day low around $77.25 before rebounding, now hovering near session highs at approximately $78.30.

Asia Pacific
The recent surge in Japanese capital spending, excluding software, has primed the market for an upward revision in Q4 23 GDP. Recent comments from the Bank of Japan (BOJ), alongside larger-than-expected rises in labor earnings and wage demand, have sparked speculation of a potential rate hike at the March 19 meeting.

Following eight weeks of decline, the yen has strengthened for the second consecutive week, marking a nearly 2.1% gain, the most significant since last August.
Meanwhile, the Australian dollar has tested initial support near $0.6600.

Europe
The economic news flow is relatively light in Europe, with more focus on political developments, particularly as observers seek insights into voter sentiment ahead of the June European parliamentary election.

Despite reaching $1.0980 after the release of US employment data, the euro's momentum waned following a six-day rally, settling slightly lower. It is currently trading within a narrow range just above $1.0935.
Sterling, on the other hand, is consolidating below $1.2865, also within a tight range.

America
Attention now shifts to tomorrow's CPI following the release of February employment data. While the headline CPI is expected to remain unchanged at 3.1%, the core CPI may see a slight decrease to 3.7% from 3.9%.

In Canada, the employment data exceeded economists' expectations, with twice the number of jobs created (40.7k), including 70.6k full-time positions, surpassing the combined total of the previous five months. However, the unemployment rate inched up to 5.8% from 5.7%, matching last year's peak.