There’s not much in it so far in European morning trade as market players are all waiting on the US CPI data later today before firming up any convictions. Major currencies were more pensive earlier and little changed but we are seeing some light moves now with the dollar slightly softer. That said, it isn’t anything material as the ranges are still relatively contained for the most part.
EUR/USD is up a little to 1.0230 but even then, the range today is not even 30 pips so that kind of exemplifies the lack of meaningful price action for the time being. In the bigger picture, the pair is still caught between 1.0100 and the 50.0 Fib retracement level at 1.0283 and we’ll have to see if the US CPI data later can be a catalyst for any technical pushes this week:
Meanwhile, USD/JPY is still slugging in and around the 135.00 mark as traders are struggling to find any real desire to go chasing firmer moves before we get to the key risk event later. The bond market is still a key aspect to watch for the pair so just be mindful of that in confirming any major technical moves later in the week:
Elsewhere, USD/CHF is down 0.4% to 0.9500 and commodity currencies are mildly higher against the greenback but both USD/CAD and AUD/USD are also just holding 30 pips ranges. As such, I wouldn’t read much into it and we’ll only get a better sense of trading sentiment once we are able to digest the US consumer inflation report later today.