The U.S. dollar continues its strong performance, with most G10 currencies depreciating by 0.45% to 0.65%. Notably, the dollar has surged above CAD 1.40, reaching levels unseen since the onset of the pandemic. Despite this, the Canadian dollar remains the strongest G10 currency today. Driving the dollar’s upward momentum are rising U.S. interest rates, alongside speculation that the Federal Reserve’s policy trajectory might become more measured under the new administration.
U.S. index futures remain steady to slightly positive, while gold continues its decline, down for the fifth consecutive session, shedding $160 during this stretch and hitting a three-month low of around $2,537. Meanwhile, January WTI crude is trading within a narrow range.

Asia-Pacific Markets
Australia reported an employment increase of 16,000 in October, with 9,700 of these being full-time roles. Although these figures slightly underperformed expectations, they reflect a stable job market.
The Australian dollar is trading at a fresh three-month low, slipping below $0.6455.
Encouraged by a robust U.S. 10-year yield, traders have pushed the dollar above JPY 156.00. Resistance may emerge around the JPY 157.00-157.50 range, but the market's sights are set on JPY 160.

European Markets
Both the euro and the British pound have fallen for the fifth consecutive session. The euro dropped to nearly $1.0500 today, a new yearly low, after trading close to $1.0555 yesterday. It has yet to breach $1.0570. Earlier, in September and October 2023, the euro formed a bottom near $1.0450, which might serve as key support.
Meanwhile, sterling has struggled to hold even minor gains, dropping below $1.28 on Tuesday and further down to around $1.2630 in European trading today.

American Markets
Today's producer price inflation report may show a slight uptick. While PPI is not the Fed's primary focus, it could take on greater significance if producer price increases begin to outpace the consumer price index (CPI). The key takeaway from today’s PPI figures lies in their implications for the personal consumption expenditures (PCE) deflator, the Fed's preferred inflation measure. Weekly jobless claims data will also draw attention, particularly after a recent increase in continuing claims for the last full week of October.