The debt ceiling talks in the US remain one of the bigger topics in focus at the moment. However, that won't be settled any time soon and things will heat up even more as we get towards the first week of June. But coupled with Fed chair Powell's more balanced remarks on Friday, that is perhaps what is keeping the dollar in check.
The greenback looked poised for a strong breakout last week but is now seeing that called into question here.
That said, this comes amid a backdrop of more positive momentum in equities with the DAX hovering at record highs in Europe while tech stocks saw a meaningful breakout last week. On the latter front, the Nasdaq closed at its highest levels since August last year with the S&P 500 also briefly traded to its highest levels of the year.
We'll have to see if that can continue in the new week. But looking ahead to Europe today, there won't be much in terms of data to shake things up at least.
0800 GMT - SNB total sight deposits w.e. 19 May
0900 GMT - Eurozone March construction output
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.
