US inflation printed 7% for the first time since 1982 but markets shrugged that off and stuck with the more optimistic mood from earlier in the week. Stocks pulled higher and bond yields retreated, while the dollar slumped across the board.
On the latter, we are at least seeing some interesting technical moves take place. EUR/USD finally broke free from its range since mid-November, pushing past 1.1400. Meanwhile, GBP/USD is continuing to march towards its 200-day moving average @ 1.3733. And USD/CAD is testing 1.2500 with its 200-day moving average @ 1.2498 in focus as well.
Those are key charts to watch when it comes to gauging dollar sentiment at the moment.
For now, it looks like there is a bit of a breather to the positive vibes in recent days though. US futures are down 0.2% but major currencies are little changed and not doing anything exciting.
Things may pick up a little later in the session but even with a light pullback, risk trades are looking to be in a good spot still so far this week. As such, the market mood and the technicals will be key drivers ahead of the weekend.
Looking ahead, we'll get the ECB economic bulletin published at 0900 GMT but there isn't much else to take note of on the schedule for European morning trade today.
I wish you all the best of days to come and good luck with your trading! Stays safe out there.
