The dollar is keeping in a decent spot, recouping some ground against the aussie and loonie while also holding an advance against the euro, yen and pound. This comes as Treasury yields are holding higher on the day with 10-year yields at 1.95% and 2-year yields at 1.32%, continuing last week's surge.
The market will have to find some balance between the push and pull in central bank hawkishness and the changes in risk sentiment. At least that will be the case until Thursday when we get to the latest US inflation report.
Otherwise, one can expect some choppiness but any risk optimism is likely to be limited considering how bonds are behaving and the fact that central banks are still laying down a more hawkish carpet for now.
0745 GMT - France December trade balance
1100 GMT - US January NFIB small business optimism index
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.
