For the third straight meeting, the Bank of Canada on Wednesday announced that is decided to lower interest rates by another quarter point. The Bank of Canada announced its widely expected decision to reduce its target for the overnight rate by 25 basis points to 4.25 percent, with the Bank Rate at 4.50 percent and the deposit rate at 4.25 percent.

The U.S. trade deficit increased to its largest in over two years in the month of July, according to a report released by the Commerce Department on Wednesday. The Commerce Department said the trade deficit widened to $78.8 billion in July from a revised $73.0 billion in June. Economists had expected the trade deficit to climb to $79.0 billion.

The euro area private sector expanded at the fastest pace in three months in August underpinned by strong upturn in services activity, final survey results from S&P Global showed on Wednesday. The HCOB composite output index posted 51.0 in August compared to 50.2 in July. The final reading was slightly below the initial estimate of 51.2. The score signaled a re-acceleration of growth.

The Antipodean currencies such as the Australia and the New Zealand dollars weakened against their major currencies in the Asian session on Wednesday, as Asian stock markets traded lower, following the sell-off on the Wall Street overnight, as markets in Australia, Japan, South Korea, Hong Kong, Singapore and Taiwan all tumbled. Weak commodity prices, concerns about global economic growth and uncertainty about the pace of U.S. interest rate cuts weighed on the markets.

China's service sector continued to expand but the pace of expansion eased since July on softening incoming new business, a monthly survey compiled by S&P Global showed on Wednesday. The headline Caixin services Purchasing Managers' Index posted 51.6 in August, down from 52.1 in July and economists' forecast of 51.9. The index has remained above the threshold of 50.0 for the 20th straight month.

Final composite Purchasing Managers' survey results from the euro area and the UK are due on Wednesday, headlining a busy day for the European economic news. At 3.15 am ET, services PMI survey data is due from Spain. Economists forecast the index to rise to 54.8 in August from 53.9 in the previous month. At 3.45 am ET, Italy's services PMI survey results are due.

The U.S. dollar gained against its major counterparts on Tuesday with traders closely tracking the latest economic data from across the globe and awaiting some crucial updates on U.S. non-farm payroll employment, private sector employment, and jobless claims.

The Commerce Department released a repot on Tuesday unexpectedly showing a decrease by U.S. construction spending in the month of July. The report said construction spending fell by 0.3 percent to an annual rate of $2.163 trillion in July, while revised data showed construction spending was nearly unchanged at an annual rate of $2.169 trillion in June.

A reading on U.S. manufacturing activity saw a modest increase in the month of August but continued to indicate contraction, according to a report released by the Institute for Supply Management on Tuesday. The ISM said its manufacturing PMI inched up to 47.2 in August from 46.8 in July, with a reading below 50 indicating contraction. Economists had expected the index to rise to 47.5.

Switzerland's economic growth accelerated in the second quarter as initially estimated on strengthening manufacturing and services output, data from the State Secretariat for Economic Affairs, or SECO, showed on Tuesday. Gross domestic product grew 0.5 percent sequentially after posting 0.3 percent growth in the previous two quarters. The rate came in line with the flash estimate.

Better-than-expected GDP data and mostly inline PCE readings catalyzed the Dollar's resurgence during the week ended August 30.

The Commodity currencies such as the Australia, the New Zealand and the Canadian dollars weakened against their major currencies in the late Asian session on Tuesday, as Asian stock markets traded lower, giving up early gains due to jitters over China's economy and a significant escalation of geopolitical tensions after two crude oil tankers, the Saudi-flagged Amjad and Panama-flagged Blue Lagoon I, were attacked in the Red Sea by Yemen's Iran-backed Houthi rebels.

South Korea's inflation softened notably to the lowest in more than three years in August, adding chances of an interest rate cut next month. Consumer price inflation softened to 2.0 percent in August from 2.6 percent in July, Statistics Korea reported Tuesday. The rate came in line with expectations and hit the weakest level since March 2021, when the rate was 1.9 percent.

Unemployment data from Spain is the only major report due on Tuesday, headlining a light day for the European economic news. At 2.30 am ET, the Federal Statistical Office is slated to issue Swiss consumer prices for August. Inflation is forecast to ease to 1.2 percent from 1.3 percent in July.

Eurozone manufacturing activity continued to contract in August due to the downturn in factory output and deeper decline in new orders. The HCOB final manufacturing Purchasing Managers' Index posted 45.8 in August, unchanged from June and July, final data from S&P Global showed Monday. The August reading was revised up from 45.6. The score signaled another sharp deterioration in operating condit

China's manufacturing activity recovered in August as new orders returned to growth, driving faster production growth, data from S&P Global showed on Monday. The Caixin manufacturing Purchasing Managers' Index rose to 50.4 in August from 49.8 in July. Although the score signalled that the manufacturing sector improved following the brief deterioration, the rate of improvement was only marginal.

Final factory Purchasing Managers' survey results from the euro area and the UK are the top economic news due on Monday. At 3.15 am ET, Spain's manufacturing PMI data is due. The index is forecast to rise to 52.1 in August from 51.0 in July. At 3.45 am ET, S&P Global publishes Italy's manufacturing PMI survey results. Economists forecast the PMI to rise to 48.0 in August from 47.4 a month ago.