The US dollar kicked off the week in a consolidative mode, trading mixed against G10 currencies. Bank of Japan (BOJ) Governor Kazuo Ueda refrained from offering guidance ahead of the central bank’s upcoming policy meeting next month. Meanwhile, US equity index futures are showing a slight upward bias, while gold attempts to rebound, climbing 1.1% to around $2,592 after a six-day decline. In the oil market, January WTI crude briefly touched a monthly low near $66.55 before recovering to a session high of $67.60 in Europe, though momentum has stalled since.

Asia-Pacific Markets
In Japan, attention is focused on the government’s efforts to finalize a supplementary budget. The yen gained ground after a key reversal in the USD/JPY pair on Friday, which saw the greenback post its largest single-day drop (-1.4%) since September, breaking below the prior session's low.
In Australia, the Reserve Bank of Australia's (RBA) meeting minutes, due tomorrow, are under scrutiny as the futures market prices in approximately 50 basis points of rate cuts by the end of 2025. The Australian dollar ended last week with an "inside day" pattern, staying within Thursday’s range—a pause after five consecutive sessions of declines.

European Markets
While the eurozone faces numerous challenges, the trade balance has not been a significant concern. Tomorrow, the European Central Bank (ECB) will release its Q3 Negotiated Wage Indicators, offering fresh insights into labor market trends. Markets are confident that the ECB will deliver another 25-basis-point rate cut at its December 12 meeting.
The euro broke a five-session losing streak on Friday but remained subdued below $1.06. Today’s trading has confined the currency to a narrow range between $1.0525 and $1.0570.
The British pound continues to underperform. Sterling extended its losing streak to six sessions on Friday, closing at its lowest level since late June.

American Markets
The US will release its Treasury International Capital report today, detailing monthly portfolio flows. However, the lagging nature of this data means it rarely moves markets.
The Canadian dollar has been under significant pressure, marking a six-session losing streak. The US dollar surged 1.3% against the loonie last week, its third-largest weekly gain this year, pushing USD/CAD above 1.41 for the first time since the early days of the pandemic.