The euro is higher for the fourth day and is getting a tailwind from a broadly-weakening US dollar. Bank of America made the case for buying the euro in a report on trading themes for the year ahead.
The US dollar is weakening today despite modestly higher long-dated Treasury yields. Overall the moves are small and the market may be looking forward to a heavy dose of economic data and Fedspeak starting at the top of the hour with:
- Consumer confidence
- Richmond Fed
- Fed's Goolsbee
- Fed's Waller (10:05 am ET)
- Fed's Bowman (10:45 am ET)
The latter pair are Fed hawks and any climb-down on the need for rate hikes or optimism about the path of inflation from them could weigh further on the dollar.