The dollar exhibited a mixed performance as the second half of the week kicked off with several critical events. France is set to hold a parliamentary confidence vote within hours, which could shape the nation's political stability. Meanwhile, U.S. Federal Reserve Chair Jerome Powell will participate in a moderated discussion hosted by The New York Times around 1:40 PM ET. U.S. labor market data takes center stage, starting with the ADP private sector employment estimate today, ahead of Friday’s nonfarm payroll report.
In Japan, the resignation of the head of the main opposition party due to a personal scandal has dampened expectations of a potential Bank of Japan (BOJ) rate hike later this month. Australia's disappointing Q3 GDP figures have led markets to anticipate an earlier rate cut, pushing the Australian dollar down by over 1%. South Korea's won rebounded, recovering nearly half of yesterday's losses amid a calmer trading environment.
Gold remains steady near $2,642 per ounce, while January WTI crude oil extended its recovery from yesterday, trading firmly.

Asia-Pacific Markets
Japan and Australia released their final November services and composite PMI data, both of which were revised higher. Despite this, market reactions suggest greater sensitivity to European PMI releases than those from Japan, Australia, or the U.S. The Reserve Bank of Australia is set to meet on December 10, with attention focused on potential policy shifts following the weak GDP report.
In South Korea, political drama briefly weighed on the Kospi, but the won recovered roughly half of yesterday’s decline.
The yen’s weakness intensified, largely due to domestic political developments. The Australian dollar, after a stable session yesterday, sold off today, hitting its lowest level since August near $0.6350.

European Markets
In Europe, all eyes are on the French parliament's confidence vote, which could determine the future of the current government.
The euro traded within a narrow, choppy range yesterday, briefly dipping below $1.05 but holding above Monday’s low. It ultimately settled near the midpoint of yesterday’s trading range.
The UK’s services and composite PMI showed slight improvements from preliminary readings. Technically, the British pound appears to be in a stronger position compared to the euro, signaling potential resilience in the near term.

American Markets
A packed U.S. economic calendar is in focus, but not all data carries equal weight. Two key reports stand out: the ADP employment estimate, which provides a glimpse into private-sector job growth, and the Federal Reserve’s Beige Book, which Fed Chair Powell has emphasized as critical.
In Canada, November services and composite PMI data will be released, along with Q3 productivity figures, which are expected to show a slight decline. The Canadian dollar experienced a marginal slip against the U.S. dollar yesterday, with the pair trading within a CAD1.4010-CAD1.4075 range. Today, the U.S. dollar inched higher, though it remains below Monday’s high.