It's rather quiet as we count down to the US CPI report later in the day. As mentioned earlier, European morning trade is likely to feature a more muted and cautiously optimistic mood and that's exactly that.

The dollar is trading more mixed with light changes across the board:

FX 12-01

EUR/USD is still confined in a 21 pips range as buyers try to hold gains from yesterday, though resistance around 1.1383-86 is still in play:

EURUSD D1 12-01

Meanwhile, GBP/USD is holding above 1.3600 so that's encouraging for the upside move - which has the potential to extend towards the 200-day moving average @ 1.3733 next. That will of course still depend on sentiment drawn from the key risk event later today.

GBPUSD D1 12-01

Elsewhere, USD/CAD is continuing to push lower just under 1.2550 as sellers keep the break below its 100-day moving average:

USDCAD D1 12-01

The pair is testing the 61.8 retracement level of the recent swing higher @ 1.2546 but has the potential to fall back towards the 200-day moving average @ 1.2498. The loonie sentiment today is helped by oil prices which are up 0.8% to near $82.

It's all about the US CPI report release today and that will be the decider for trading sentiment in the sessions ahead.