The bond market remains the key spot to watch this week and Treasury yields are tracking higher on the day currently.
That is underpinning the dollar with USD/JPY looking towards the 28 January high of 115.69, while commodity currencies ease a touch after yesterday's gains. EUR/USD is also down to testing levels below its 100-day moving average of 1.1422 again, so that remains a key technical level to watch going into the close later.
Stocks are looking fairly more tepid, as any optimism is looking tough to sustain amid hawkish central bank narratives and worries on the inflation front. The US inflation report on Thursday will be the key risk event to be mindful about this week.
Elsewhere, oil is holding up after a light breather yesterday with Brent at $92.75 and WTI at $91.47. The news on the Iran deal progress over the weekend presented a bit of a challenge to the upside streak but for now, it looks like nothing more than a light hiccup. That said, seven straight weeks of gains does pose a bit of a concern that conditions may be stretched. So, that is something to consider.
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