A quiet one on the agenda in Europe today

That will keep the focus and attention on the risk mood as we look to the session ahead. For now, things are calmer with US futures paring earlier losses to be marginally higher. But again, it’s still early in the day and Wall Street is a whole different beast as we saw in trading yesterday.

For one, the technicals are also not looking good for US stocks at the moment as seen here.

In FX, the dollar continues to hold rather mixed. The euro stays buoyed with eyes on the German debt brake reform, so even safety flows are not really leading to much downwards pull on EUR/USD. As for USD/JPY, the pair is now testing waters under 147.00 with eyes on the 145.00 mark next.

The greenback is at least holding its own against the commodity currencies, with USD/CAD recovering back above 1.4400 ahead of the US CPI report and Bank of Canada policy decision tomorrow. Meanwhile, AUD/USD is tracking lower back under 0.6300 amid the more dour risk mood.

Looking to the session ahead, there won’t be any notable releases in Europe with only the US NFIB small business optimism index on the agenda at 1000 GMT. As such, traders will continue to place their focus and emphasis on risk sentiment in the day ahead.

I wish you all the best of days to come and good luck with your trading! Stay safe out there.

This article was written by Justin Low at www.forexlive.com.