The dollar eased off gains early yesterday only to claw some of that back late on in US trading. The move was helped by a slight bounce in Treasury yields, though stocks were upbeat as usual. Overall, this puts EUR/USD back close to 1.0400 and GBP/USD snapping its recent bounce back towards 1.2300. Meanwhile, USD/JPY stays underpinned in keeping a bounce off 155.00 this week to 156.70 now ahead of the BOJ tomorrow.

It’s all to play for in the new day with the dollar having lost some of its allure from the opening stages this year. However, the pullback since last week isn’t anything too significant as of yet.

The US weekly jobless claims data later might offer something at least for traders to work with today. Otherwise, it’s a wait until the BOJ tomorrow to liven things up before the weekend.

As for European trading today, it’s likely to be a bit of a dud once again. There are only some light releases on the agenda and that should translate to a slower session overall. With risk sentiment also keeping in check so far, broader markets might be waiting until US trading later to get in on the action.

0745 GMT – France January business confidence
1100 GMT – UK January CBI trends total orders

That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.