The oil drop yesterday was perhaps the most notable price action but we are seeing calmer tones there so far today.
WTI crude is holding just above its 200-hour moving average of $89.08 so that remains a key spot for buyers to defend in the sessions ahead.
Meanwhile, the dollar is keeping a touch lower on the day but changes among major currencies are rather light and minimal. EUR/USD continues to toy around its 100-day moving average @ 1.1419 as ECB policymakers are sending a bit of a mixed message following Lagarde's press conference last week. The latest being from Villeroy here.
The other key focus in the market is bond yields and we are seeing Treasury yields keep higher on the week but not really chasing the next breakout leg just yet. 10-year yields need to crack 1.97% and 2.00% for that to come by and we may not see such a move until tomorrow's US inflation report perhaps.
As such, expect more choppy and indecisive tones before the key risk event tomorrow with little in Europe today to shake things up.
0700 GMT - Germany December trade balance data
1200 GMT - US MBA mortgage applications w.e. 4 February
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.
