Today is mostly a placeholder as traders all await tomorrow’s US CPI data. This is a good reason why the price trend tends to be more sideways at the beginning of the week. And that’s exactly what we have so far today. The dollar has remained stable, but there is still room for improvement in the day’s changes.
As outlined here, EUR/USD remains trapped in a key technical level just below 1.0800. Meanwhile, USD/JPY is hovering just above 149.00, but there is still not much confidence that it will race towards 150.00. GBP/USD has since returned to its recent consolidation range of 1.2600-1.2800 and awaits its next move.
In terms of commodity currencies, USD/CAD rejected an attempt to test January’s highs last week and currently sits just below its 200-day moving average of 1.3475. AUD/USD is also trading near the 0.6500 mark, with upside currently limited by its own 100-day moving average of 0.6535.
Elsewhere, US futures are flat, which doesn’t help much on this day. For U.S. Treasuries, the 10-year yield fell just 1 basis point to 4.177%, but remains below a key technical line around 4.20%.
There are some bumps across the board, so it will depend on the US CPI data to provide the next clues to the market.
