The equities rebound yesterday was impressive and once again, it underscores the strong appetite of dip buyers. As Adam mentioned, perhaps there is no alternative even for the time being.

After the drop last week, perhaps the turn yesterday is just what the doctor ordered for stocks and risk trades. As such, be mindful of dollar sentiment for now even if the greenback fared modestly in overnight trading.

For now, the dollar is a touch softer as we look towards the session ahead. I'd argue that EUR/USD would be a good gauge of overall dollar sentiment and the key level to watch there will be any push towards 1.1400. The swing region highs around 1.1383-86 will be a major test for buyers to break out of the range since mid-November last year.

Meanwhile, the SNB appears to be doing their thing as EUR/CHF climbs back above 1.0500. It's early in the year but they are making their presence felt, so it is a reminder to market players that they are still around.

Elsewhere, gold is tracking back above $1,800 in hopes of building further upside momentum. The bond market remains a key driver dictating sentiment, so we'll see how things play out. For now at least, Treasury yields are not finding new legs with 10-year yields down 1.8 bps to 1.76% on the day. That's a comfort for gold in the meantime.

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