A near empty calendar day in Europe to start the new week
A US holiday today should keep things in the market relatively quiet, with little to work with besides the same theme from last week in general.
The dollar was bolstered on Friday and is keeping steadier once again today, alongside the yen as risk sentiment keeps more cautious for the time being.
S&P 500 futures are down 0.2% but thinner liquidity conditions in the day ahead may lead to less confirmation about the market mood to start the week.
The greenback is maintaining a modest advance against commodity currencies once again today, with AUD/USD nearing its low from last week @ 0.7667.
USD/CAD is also continuing a push off a double-bottom near 1.2630 and buyers will be eyeing a potential push towards the high last week @ 1.2835 next.
Meanwhile, EUR/USD is continuing its gradual descend as sellers now take aim at the 9 December low @ 1.2059 as well as the 61.8 retracement level of the recent swing higher since November @ 1.2063. Those will be key support levels to watch this week.
Elsewhere, gold broke below its 200-day moving average amid the dollar strength but is keeping above a key trendline support for now despite an early slump to a low of $1,804 to start the week before keeping above $1,830 for now.
Looking ahead, there isn't anything much in terms of data releases in Europe today so expect the market mood to keep more quiet and I would say more cautious in general following how things unraveled ahead of the long weekend on Friday.
The week ahead does promise to be more interesting with central banks in focus (BOC, BOJ, ECB), Biden's inauguration, and euro area January flash PMI readings.
0900 GMT - SNB total sight deposits w.e. 15 January
Your weekly check of the deposits kept at the SNB by Swiss banks. This data is a proxy for FX interventions.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
