Dollar on the backfoot awaiting US CPI data

There’s not much in terms of headlines driving markets today but we are seeing the dollar retreat amid positiong flows ahead of the key risk event later in the day. EUR/USD is now up 0.5% to 1.0170 levels as buyers look to build on the break yesterday above the swing region resistance at 1.0075-90:

There is still scope for the rally to extend towards the 100-day moving average (red line) at 1.0333, so just be wary of that in the aftermath of the US CPI data later this week.

Meanwhile, GBP/USD holds higher by 0.4% at 1.1720 levels as seen earlier here. And USD/JPY is down 0.5% to 142.18 as it continues to toy in between the 100 and 200-hour moving averages at the moment:

Elsewhere, with the risk mood being more positive for now, commodity currencies are also holding a slight advance against the dollar. USD/CAD is down 0.3% to 1.2960 while AUD/USD is up 0.3% to 0.6910 on the day currently.