Dollar on steadier footing to kick start what will be a big week for markets

Amid all the focus on the Fed, let’s also not forget that it is NFP week in markets. Not only that, the BOJ and BOE are also on the agenda in adding to Australia and Eurozone CPI data. And to top all of that off, there is also plenty of major earnings releases on the calendar; not least with four of the Magnificent Seven reporting.

The dollar is keeping steadier so far today, with slight gains seen across the board. USD/JPY is also now flat at 153.75 while GBP/USD is the laggard, down 0.5% on the day to 1.2810 currently:

For cable, the downside pressure extends past the 50.0 Fib retracement level of the swing higher this month. And that continues the rejection of the 1.3000 mark as well. The 61.8 Fib retracement level at 1.2777 will be the next support region to watch as we look towards the bigger events this week.

Besides that, EUR/USD is down 0.2% to 1.0835 and AUD/USD down 0.1% to 0.6540 on the day currently.

It comes amid a more mixed mood in markets though. S&P 500 futures have trimmed gains to around 0.2% but 10-year Treasury yields are down nearly 3 bps to 4.166%, inching towards the lows for the month.

This article was written by Justin Low at www.forexlive.com.