It's a slow start to the day after the moves yesterday following Fed chair Powell's remarks, which in my view didn't really offer up anything new. But he did reaffirm that bad news is good news, outside of inflation data and that is one key takeaway to be mindful of moving forward.
However, there isn't much else for markets to work with in terms of key data this week so the overall risk mood will remain an important driver of trading sentiment before we get to the US CPI data next week.
The dip buying in equities yesterday was encouraging and once again just reaffirms that Wall Street tends to have a play of its own in the past few weeks. We'll see if that continues today.
In FX, the technical ranges for dollar pairs this week are leaving a lot to be desired after the recent hold by the greenback at key levels. Looking at other pairs, I'm still liking the slow grind lower in GBP/AUD with the rejection at the 200-day moving average holding and also will be keeping an eye on GBP/JPY as it moves towards key support near 156.00 next.
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