Dollar stays poised to start the new week

The dollar is trading just a little higher to start the day, seeing slight gains against the euro, pound and franc now. USD/JPY had already been higher since Asia trading here, and is keeping those gains. The pair is up 0.7% to 153.65 currently. Meanwhile, EUR/USD is starting to dip lower to 1.0685 at the lows for the day:

The downside shove last week stalled around 1.0700 on the daily chart and that is being contested now. Just be mindful that there are large option expiries at the figure level which could still lock price action for a bit in the session ahead.

But at the balance, the dollar looks to be trying to flex its muscles again. That despite Treasuries being off for today.

Going back to EUR/USD, the June lows around 1.0666-70 will be in focus should sellers firmly crack below the 1.0700 mark.

Elsewhere, GBP/USD is also down 0.2% to 1.2895 now while USD/CHF is up 0.3% to 0.8780 on the day. The antipodeans are holding more flattish with AUD/USD at 0.6580, keeping little changed thus far. China sentiment was less hurt despite stimulus disappointment at the end of last week, so that might be helping a slight bit alongside better a risk mood for now.

US data will be in focus later this week as we will have CPI, PPI, and retail sales all lined up in the days ahead.

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