USD rebound in starting the week after the choppy move last week will focus on FOMC meeting (expect rate unchanged at 1.5% but speech will bias to slightly hawkish). Also the upcoming US NFP data this coming Friday (expects 175k, unemployment rate of 4.1%, average hourly earnings +0.3%) and higher US stock and rising bond yield will help on some technical rebound for the USD but so far in slow and orderly pattern. USDJPY hold above 108 which driven some short coverings after Japan’s Aso clarifies that BOJ will continue to ease. In despite of Kuroda having inflation to go up, it will still repeats the current policy in an unchanged effect. USD remains in bearish trend and more likely current move will be as corrective in nature.
EUR retraces back despite the higher Germany 2 years and 10 years bond yield, as the US treasury yield also in rising offset effect. Technical EUR still continue to be in bullish trend and downside retrace will still attract new buyers.
GBP also retraces down after its recent gains. And today EU-27 ministers meeting in Brussels for finalizing the Brexit directives, any headlines or comments will expect to direct the intraday GBP action.
Commodities currencies retrace slightly but overall tone remains firm with some catch up move still in the market. Today US Personal Income/Spending, Personal Consumption Expenditure, Dallas Fed Manfuacturing Index and ECB’s Praet, Lautenshlager and Coeure speech as well as the stock/bond market move will dominate the intraday action.