The US dollar is firm against all G10 currencies except the Japanese yen. Local reports and market movements suggest a short covering of previously sold yen positions ahead of next week's Bank of Japan (BOJ) and Federal Open Market Committee (FOMC) meetings. Despite this, the dollar remains above last week's low, just under JPY155.40. Meanwhile, gold is trading higher but remains below yesterday's peak of approximately $2412. September WTI crude oil is trading quietly within a 50-cent range above $78.20, staying well within yesterday's broader range.

Asia Pacific Markets
The economic calendar in the Asia Pacific region is relatively light until tomorrow's preliminary PMI reports for Japan and Australia. The Bank of Japan will meet next week, with a Bloomberg survey from last month indicating that around a third of economists expect an interest rate hike. After dropping to JPY156.30 during yesterday’s Asia Pacific session, the dollar gradually climbed back to around JPY157.15. This recovery presented a new opportunity to sell the greenback, amid market speculation of yen short covering by Tokyo accounts ahead of the upcoming BOJ and FOMC meetings.
The Australian dollar continues to decline, approaching $0.6620.

European Markets
The key data highlight for Europe this week is tomorrow's flash July PMI. Yesterday, the euro traded slightly outside its pre-weekend range but spent most of the session between $1.0875 and $1.0900. Today, the euro fell to a seven-day low, slightly below $1.0865.
Sterling had an inside day on Monday and continues to trade within yesterday's range today.

American Markets
In anticipation of next week's FOMC meeting and the July employment report, the most significant data is concentrated towards the end of the week, with weekly jobless claims, Q2 GDP, and the PCE deflator due Thursday and Friday. Today's high-frequency reports include the Philadelphia Fed's non-manufacturing index and the Richmond Fed survey. June existing home sales are also expected today, with predictions of a fourth consecutive monthly decline.
The Bank of Canada is scheduled to meet tomorrow, and the market widely expects a second interest rate cut. Yesterday, the US dollar reached CAD1.3775, its highest level since June 14. Today, it remains in a narrow range, mostly between CAD1.3755 and CAD1.3775.