The greenback is the laggard as it is still suffering from a Friday hangover, after the underwhelming ISM services report here. The antipodeans are leading the way, with risk tones looking more upbeat and also helped by further gains in the Chinese yuan. USD/CNY has plunged to 6.77 from around 6.90 to start the year, as China prospects improve on the re-opening.
I've been saying for a while now, that this is a market that is desperate for any signs of a Fed pivot and the Friday action exemplifies that notion.
With the S&P 500 threatening to break out of range and moving above its 100-day moving average as well, risk sentiment might factor into play before we get to the US CPI data later in the week. For now, it is looking optimistic for broader markets and that doesn't bode too well for the dollar.
Looking ahead to Europe, there will be some notable releases to move things along but none of which should be too impactful.
0645 GMT - Switzerland December unemployment rate
0700 GMT - Germany November industrial output
0745 GMT - France November trade balance data
0900 GMT - SNB total sight deposits w.e. 6 January
0930 GMT - Eurozone January Sentix investor confidence
1000 GMT - Eurozone November unemployment rate
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.
