Things are not all too different from trading yesterday in a sense. The dollar is continuing to keep a slight advance to start the week but all eyes will be on the Fed tomorrow.

Commodity currencies are noticeably weaker as the overall risk mood stays on edge. Equities saw a bit of a rough showing yesterday as inflation and hawkish Fed fears seeped in. There was a bid in bonds as well, with the omicron variant spreading to China also a plausible reason of discomfort across the market.

Similar to yesterday, it is tough to draw much conviction in the dollar especially against the euro and yen. US PPI data later may offer something to work with but the key focus this week is still the Fed.

Elsewhere, gold continues to sit in place as it has been for the past two weeks. The yellow metal is also waiting to take cues from the Fed tomorrow.

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