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After yesterday's drop, the dollar is sitting on the edge but is keeping somewhat steadier today ahead of European morning trade.
EUR/USD is contesting fresh highs in nearly a month around 1.2170 while USD/JPY has slumped back to test the 105.00 handle today.
Meanwhile, there are a few runners with GBP/USD extending above 1.4000, AUD/USD looking towards 0.8000, and USD/CAD at the lows for the year under 1.2600.
Commodities are still the frontrunners this week with oil gaining to $62.60 and testing its 100-month moving average once again today. That will be a key level to watch in the week ahead to gauge buyers' resolve.
Elsewhere, gold is pushing back above $1,800 as buyers seize near-term control on a push above its key hourly moving averages. However, the key daily moving averages @ $1,858-63 will be the major test for any extensive upside break in gold.
As much as there is plenty of focus on yields and inflation, the commodities push is also a key theme to take note of in the market; though it does tie together.
The shift in flows may be a timely one with equities also overdue a "healthy" correction. But in the context of the bigger picture, it is hard to fight the power of easy money and the dip buying strategy in risk trades until the Fed changes its stance.
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