The market carries over the theme from the end of last week
Just another reminder, it is a US holiday today so the market may be mired by thinner liquidity conditions later but that also means that investors will have little to work with during the trading day, with not much new developments since the weekend.
That means the mood from the end of last week remains the key thing hanging over the market and we are seeing more of that continuing into trading this week.
European futures are keeping lower while S&P 500 futures are also seen down 0.3% as we look to get things started on the session.
This is keeping the dollar more bid alongside the yen, with commodity currencies trailing.
AUD/USD is trading to session lows near 0.7677 as sellers keep near-term control and look to push towards a test of the 11 January low @ 0.7666.
USD/CAD is also approaching 1.2800 as buyers are starting to take aim at the 11 January high @ 1.2835 next, extending the rebound from a double-bottom @ 1.2630.
Another key pair to watch is EUR/USD as we see price start to near a test of a couple of key support levels this week:
The 9 December low @ 1.2059 and the 38.2 retracement level of the swing higher since November @ 1.2064 are key levels to watch currently, as a firm break/close below that will pave the way for a potential retest of 1.2000.
The 100-day moving average (red line) @ 1.1931 will also be called into question if sellers continue to push the agenda during the course of the week.
Elsewhere, precious metals are keeping a decent rebound so far on the day with gold up 0.4% to $1,836 after having traded as low as $1,804 earlier. Meanwhile, silver is up by over 1% to $25 after having dipped by as much as 2% to near $24 earlier.