German Ifo business climate index on the agenda in Europe today

The dollar suffered its first weekly loss in seven last week and the trend is carrying over to today with the greenback seen lagging notably across the board.

There are a couple of modest moves being observed with USD/JPY falling to 127.30, nearing its 26 to 27 April lows at 126.94-02. Meanwhile, GBP/USD is up to over two-week highs above the 1.2500 handle and AUD/USD likewise nearing 0.7100 at the moment.

The dollar is taking a breather after a strong run in the past two months and we'll see if this is where it carves out a peak, as the market mood is shifting to be more risk positive with equities Equities Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Read this Term carrying over the late momentum from last week. The mood music from China is also improving somewhat as Shanghai is inching out of lockdown, though Beijing is still facing tight restrictions. But at least Chinese authorities are delivering in terms of policy support as seen last week.

For now, it's a risk positive start to the new week and that is dictating sentiment as we look towards European trading. There isn't much on the calendar in the session ahead to really distract from that.

0800 GMT - SNB total sight deposits w.e. 20 May
0900 GMT - Germany May Ifo business climate 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.