As the new week begins, the US dollar remains firm. The Japanese yen and Australian dollar are the weakest performers among G10 currencies, each down around 0.30%. Both the euro and British pound are also trading lower, though still within their pre-weekend ranges. Meanwhile, the Canadian dollar is under pressure, poised to extend its losing streak for a fourth consecutive week, as markets expect the Bank of Canada to announce a 50 basis point rate cut midweek.
US stock index futures are softer, while gold continues its rally, rising for the fifth consecutive session. December WTI crude oil has rebounded by about 1.7%, trading near $70 after an 8.25% decline last week.

Asia-Pacific Markets
With a light economic calendar across the region, attention is focused on potential new stimulus measures from Beijing and the upcoming Japanese elections on October 27. In China, the loan prime rates were cut by 25 basis points today, marking the first reduction since July and slightly exceeding expectations.
Meanwhile, the US dollar briefly dipped below JPY 149.40 before the weekend, reaching a low of JPY 149.10 during the local session today before bouncing back above JPY 150 in European trading.

European Markets
Europe's economic calendar is also light this week, with preliminary Purchasing Managers' Index (PMI) data being the key event. There may be room for a small improvement in eurozone results. The swaps market has increased the odds of a 50 basis point rate cut by the European Central Bank at its December 12 meeting, now estimating a 30% probability.
The euro ended a four-day losing streak before the weekend, but remains below its five- and 200-day moving averages, both of which have converged slightly above $1.0870.
Sterling saw back-to-back gains to close last week, marking its first consecutive rise since a five-day rally that ended on September 24, though it is struggling to maintain momentum today and is trading lower within its pre-weekend range.

American Markets
In the US, the September index of Leading Economic Indicators will be released today. Like many other economic metrics, it has struggled to provide a clear picture of the post-COVID economy. Additionally, the upcoming US election is becoming an increasingly significant factor for the markets.
The Bank of Canada will meet on Wednesday, and with soft inflation data and comments from Governor Macklem indicating the potential for an accelerated pace of rate cuts following three previous cuts, the market is pricing in a more than 90% chance of a half-point reduction.