Little on the agenda today as the focus is on the US CPI report | Forexlive

The dollar is keeping steadier in the new day but remains in a mixed spot with EUR/USD testing waters above 1.0900 while USD/JPY is catching a slight rebound back above 148.00 for now. And that’s not even talking about the wild see saw ride in USD/CAD amid the whole additional tariffs debacle.

Trump threatened with additional tariffs on Canada that led to a spike in USD/CAD to above 1.4500 before walking that back, seeing the pair fall briefly to under 1.4400. At the end of the day, traders were just as annoyed with the pair closing at flat levels on the day. Even-stevens.

Risk trades took yet another beating but tech shares managed to salvage a bit of pride at the end at least. The mood music is slightly calmer today but traders will have to look to the US CPI report to vindicate any potential recovery on the week. Otherwise, if price pressures continue to choke the Fed into holding rates amid a softening economic backdrop, there will be more pain in the second half of this week.

Looking to European trading, there won’t be much to distract from the focus on the inflation numbers as there will be no major economic releases on the session. ECB president Lagarde is due to speak but she will only be delivering the opening address to this event here. There might be some monetary policy remarks, if not from Lagarde then at least the other policymakers at the event.

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