The market mood is a better one compared to Friday last week. But this is just a slight breather as there were no significant escalation in geopolitical developments over the weekend. In FX, the changes among dollar pairs leave a lot to be desired:
The moves are less than 20 pips for each pair with a flattish mood being observed for some as well. In the bigger picture, the dollar continues to sit in a comfortable spot but further gains are being capped for now.
USD/JPY remains a key one to watch as the pair continues to consolidate close to the 155.00 mark. The figure level is a key threshold to take note of as it is a potential intervention trigger for the BOJ.
If risk trades are to gain further, I can see the dollar losing a bit more ground. But soon enough, we'll have some modest data releases to work with in the week ahead. And those perhaps might give traders more push in a call to action.