There is a push and pull feel to things this week as dollar sentiment is rather unsettled, after the greenback held right at the edge of the cliff in trading last week. It seems like traders are waiting for another trigger point to act upon but the lack of key economic releases this week (as compared to last week) isn't helping.
But that is not to say that there aren't other interesting spots to watch. Among them, EUR/JPY continues to shine in a push towards its October highs in the region of 147.75 to 148.40. Likewise, CHF/JPY is knocking on the door of the 150.00 mark and that is an important level to watch ahead of the weekly close with the key level being sustained in September and October trading last year.
The ECB and SNB are arguably two of the more hawkish major central banks right now and that is helping to underpin both the euro and franc for the time being.
Elsewhere, European equities are continuing their good form but there is some tepid appetite in Wall Street that could put a lid on the optimism - even with the DAX and CAC 40 at fresh highs this year. Perhaps it is time for some profit-taking? There is also the risk of earnings season and PMI data coming up later in the week.
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