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The dollar is keeping a slight edge as we get into European trading today with equities a touch softer. Inflation and economic slowdown worries are two easy reasons to blame but the light retreat in stocks also comes after a good shift last week.
There's plenty of scope for some volatility bouts going into year-end with so much key factors still at play but if anything else, continue to be mindful of Fed expectations and the bond market for a better sense of how things are panning out.
Yen pairs may be taking a light breather to start the day but after the gains last week, the likes of CAD/JPY, GBP/JPY, and NZD/JPY are still keeping in a good spot.
Higher yields to start the week will help to add to further tailwinds but keep an eye out on risk sentiment in case a bigger retreat in equities spark some risk aversion plays.
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