Dollar pressured ahead of European markets open

Author: Justin Low | Category: News

The greenback is on the back foot as we begin the session

A second wave of selling hits the dollar as we begin the new week following Friday's weaker-than-expected payrolls data. The dollar recovered some poise into the close last week but there are still lingering concerns about the Fed raising rates next week and that is weighing on the greenback so far today.

Aside from that, lower Treasury yields continue to stoke fears with the yield curve inversion prompting questions of a possible recession that is to come for the US economy.

Meanwhile, the euro continues to surge ahead despite Italy's budget still seen in limbo as the single currency benefits from struggles seen in the dollar (as noted above), pound (worries ahead of tomorrow's Brexit vote), and the yen (poor revised Q3 GDP report earlier). The latter still has some support from the poor risk sentiment in equities but so far the negativity is somewhat contained since Asian trading.

E-minis are still trading lower by 0.6% and European equities look set to open deep in the red as we begin the day, playing catch up once again to the declines seen in Wall St on Friday. The dollar's tepidness and risk sentiment will be key themes to watch out for in the session ahead but also be wary of Brexit headlines that could impact the pound prior to tomorrow's meaningful vote in parliament.
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