Amidst a backdrop of the dollar showing some strength earlier this week, attributed to a 25 basis point increase in the US two-year yield, its performance has left much to be desired. Today, it's trading with marginal variations against G10 currencies in the European market. Nevertheless, currencies like the dollar bloc, sterling, and the Norwegian krone exhibit a slightly stronger bias. Conversely, the euro, yen, and Swiss franc are experiencing minor setbacks.
Equities are showing resilience, except for markets in China and Hong Kong.
Gold seems to be consolidating within the ranges of the past two days, while oil is on a rebound, with April WTI climbing back above the $80 per barrel mark.

Asia Pacific
Japan's spring wage negotiations, known as shunto, concluded recently, with several major companies agreeing to the most substantial pay raises seen in over three decades. Observers report an average increase of over 4% in wages.
The dollar remained within the range of ¥147.50 to ¥148.00 against the yen yesterday, and it continues to do so today.
The Australian dollar managed to stay above Tuesday's lows but fell short of surpassing Tuesday's highs. Nevertheless, it closed at its highest level in two months.

Europe
The eurozone's economic performance in 2023 showcased stagnation in Q1, followed by a modest expansion in Q2 and a contraction in Q3, with a subsequent return to stagnation in Q4. Hopes for a better 2024 were dampened by the significant 3.2% drop in January's industrial production, indicating a challenging start to the year.
Despite this, the euro displayed strength yesterday after holding firm at $1.09 on Tuesday. It reached session highs near $1.0965 during North American trading, marking its strongest level in two months.
Meanwhile, sterling hovered around the $1.28 mark today, showing minimal deviation from this level.

America
Following the release of the February employment report and CPI data, expectations of a Fed rate cut in June have been tempered. Should the Fed refrain from cutting rates in June, the likelihood of four cuts this year could diminish. After the recent job data, the probability of a fourth cut surged to approximately 80% before retreating to around 22% in the first three sessions of this week.
Today's focus is on key US data, notably February's retail sales figures.

Against the Canadian dollar, the US dollar tested three-day lows yesterday (~CAD1.3460), with a break below potentially leading to a retest of support levels around CAD1.3400-20.