The ongoing adjustment to US interest rates is bolstering the strength of the US dollar. Yesterday, the 10-year yield climbed to 4.40%, marking its highest level since last November. Today, the dollar exhibits firmness against all G10 currencies.
Despite a powerful earthquake off the coast of Taiwan causing factory closures, the Taiwan dollar managed to secure minor gains.

Following significant equity losses in the US yesterday, Asia Pacific markets experienced a tumble today. However, Europe's Stoxx 600 index remains steady to higher after yesterday's 0.8% decline, and US index futures are showing softer profiles.

Gold reached a new record high near $2288.50 before a round of profit-taking nudged it slightly below $2268, where fresh bids emerged.
May WTI continued its recent upward trajectory, trading near $85.65 today. OPEC+ extended its "voluntary" output cuts through Q2, and API reported a decrease of over 2 million barrels in US stockpiles last week.

Asia Pacific
Japan's final March service and composite PMI readings remained largely unchanged from the initial estimates.
The dollar has been trading within a range of nearly JPY151 to JPY152 since last Wednesday.

The Australian dollar reached almost $0.6525 in the North American session yesterday and maintained its position in the local session today before retracing slightly to nearly $0.6500, staying within Monday's range amid lackluster activity.

Europe
The eurozone reported a moderation in consumer price inflation to 2.4% from 2.6% in February, with the three largest members showing lower-than-expected EU harmonized measures of inflation.

Over the past month, the Swiss franc has depreciated by approximately 2.8% against the Japanese yen. While the Swiss National Bank reduced rates last month, the Bank of Japan raised them. Japanese authorities are considering intervention to support the yen.
The euro rebounded from its recent low of $1.0725, reaching almost $1.0780 in North America, a level it has maintained today.
Sterling has seen a slight uptick but remains below last week's low.

America
Today's focus lies on the ISM services report, with the flash March services PMI slipping for the second consecutive month to 51.7. However, ISM services are expected to improve to 52.8 from 52.6. Attention also remains on the ADP private sector jobs estimate.

The Canadian economy experienced contraction in Q3 2023 before fully recovering in Q4. The PMI has been lagging, and today's report on March services and composite PMI will be closely watched.
The Canadian dollar has strengthened slightly but remains below CAD1.3590, although it reached a five-day high.