The dollar was pushed lower after an appalling US services PMI reading yesterday but is looking to regain more control again today following the good start to the week. EUR/USD continues to keep under parity while risk tones are still rather soft, adding to the fact that 10-year Treasury yields are still above 3% and the Chinese yuan is continuing to weaken further.
Put everything together, there is a good argument for the dollar to keep a firm stance ahead of Fed chair Powell's speech at Jackson Hole. That remains the key risk event to be mindful about this week.
With there being nothing much on the agenda in Europe today, we might see some consolidative tones but watch out for changes in the risk mood to dictate the kind of pushing and pulling we'll be seeing before US traders enter the fray later.
1100 GMT - US MBA mortgage applications w.e. 19 August
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.
