The dollar is tentatively weaker as we get into the new week, with US stocks threatening a technical breakout as highlighted here. I would argue that is the playbook that broader markets are focusing on for now, before all the attention turns towards the FOMC meeting next week.
The euro's gains are also looking rather tentative though, with EUR/USD holding just below 1.0900. The PMI data today might factor into the equation, depending on the significance of any misses or beats. Meanwhile, the volatility in the yen continues to play out with USD/JPY lower today by 0.4% to 130.10 currently.
It's a mixed bag but the technicals are my focus at the moment, more than other things on the week. But as we get closer to the Fed, all bets will have to be taken off and I would expect positioning flows to take over soon enough.
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