It is the Lunar New Year holiday period and most of Asia are out on break today. Chinese markets in particular will be closed for the entire week, so that will also impact liquidity conditions in each day as we look towards European trading.
The dollar is marginally softer today with EUR/USD threatening a further breakout close to 1.0900 after consolidating just above 1.0800 in the past week. This comes as we start to see some divergence in central bank policy sentiment, with the ECB maintaining its hawkishness while the Fed appears to be dialing things down - as per Waller's remarks on Friday.
GBP/USD is also knocking on the door of its December highs at 1.2443-46, so that will be one to watch with AUD/USD also on approach to retest the 0.7000 mark today.
Looking ahead, there won't be much in terms of data to influence the proceedings in Europe. As such, trading sentiment will rest largely on the risk mood and technicals to start the new week.
0900 GMT - SNB total sight deposits w.e. 20 January
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.
