The dollar pared early gains yesterday only to claw back some of that late in US trade. The move was helped by a slight bounce in Treasury yields, although stocks were typically upbeat. Overall, this puts EUR/USD back near 1.0400 and GBP/USD heading back to 1.2300. Meanwhile, USD/JPY remains fundamental in holding a bounce off 155.00 this week to 156.70 now ahead of the BOJ tomorrow.
It's all to play for in the new day as the dollar has lost some of its traction from this year's opening levels. However, the pullback from last week is nothing too significant so far.
Later weekly US jobless claims data could at least offer traders something to work with today. Otherwise, wait until the BOJ tomorrow to liven things up before the weekend.
In terms of European trade today, it seems to be a small thing again. There are only a few light calls on the agenda and that should translate into a slower session overall. With risk sentiment also tracking so far, broader markets may wait until the US trades later to get in on the action.
0745 GMT – France Business confidence January
1100 GMT – UK January CBI total orders movements
That's all for the next session. I wish you a great day ahead and good luck with your business! Stay safe out there.
