The US dollar is consolidating today, showing a slightly weaker trend against major G10 currencies and many emerging market currencies. Despite a larger-than-expected Chinese trade surplus, the yuan has not gained ground, with the dollar now trading above its 20-day moving average against the yuan for the first time since late July. In contrast, the British pound is rebounding after two consecutive losing sessions, boosted by a strong jobs report.
Meanwhile, US stock index futures are down between 0.25% and 0.40%, giving back some of the gains from the previous day. Gold remains stable, trading within a narrow range above $2,500, while October WTI crude oil briefly exceeded $69 per barrel before retreating to just under $67.50. Investors will be closely watching updates from the Energy Information Administration (EIA), the International Energy Agency (IEA), and OPEC this week as they release their latest market outlooks.

Asia-Pacific Markets
This week brings limited economic data from Japan, with the main focus on August machine tool orders, due tomorrow, and the Ministry of Finance's weekly portfolio investment report. The data has highlighted Japanese investors' consistent appetite for foreign bonds and stocks following the yen's strong recovery from its multi-decade low.
While the Bank of Japan meets on September 20, any policy shifts are unlikely.
The dollar traded within last Friday’s range on Monday and remains in a narrow band today.
The Australian dollar found support in both the Asian and North American sessions, hovering around the 38.2% retracement of its losses since the late August highs.

European Markets
The UK jobs data reinforces the positive momentum that enabled the British economy to lead the G7 in the first half of 2024. This strength is expected to continue into Q3, with tomorrow’s July GDP data set to provide further confirmation.
After declining sharply before the weekend, sterling continued its slide yesterday, briefly dipping below $1.3070. It tested a bit lower today before stabilizing.
Meanwhile, the euro also faced pressure, slipping another 0.3% yesterday after falling 0.25% last Friday. The single currency found support just above last week’s low, which has held firm so far today.

American Markets
The much-anticipated US presidential debate is set to take place tonight, with national polls and developments in key swing states showing a tightly contested race.
In the currency markets, unlike other G10 currencies, the Canadian dollar has seen no further selling pressure after Friday’s sell-off. The USD/CAD pair briefly touched above CAD 1.3580 late last week, but Monday’s pullback saw it consolidate just below CAD 1.3550 in a relatively quiet session.