Dollar Consolidates as Yen and Loonie Lag Behind

The US dollar is experiencing a period of consolidation against major currencies such as the G10. The Japanese markets are closed until Thursday, but despite this, the yen has declined by approximately 0.20% in European morning trading to match the Canadian dollar as one of the weakest among the major currencies.

In preparation for Wednesday's flash September PMI, the economic calendar is relatively light today and tomorrow. Preliminary talks ahead of this week's Trump-Xi meeting have reportedly reached a framework agreement on AI discussions, but no consensus has been reached regarding the extension of the tariff truce set to expire in November.