Dollar steadies after overnight drop, light data docket ahead in Europe

<p>The rally in equities yesterday helped to pin the dollar back down alongside a drop in Treasury yields. There weren't any major headlines to have caused the turnaround from last week but it could be that traders are pricing in some anticipation ahead of the US CPI data on Thursday.</p><p>10-year Treasury yields are now at 4.01%, keeping below the 200-day moving average of 4.06%, and that technical factor is also perhaps what is keeping a lid on things. So far today, things are calmer with the dollar steadying itself and holding mostly little changed amid narrow ranges:</p><p>USD/JPY is down slightly though by 0.3% to 143.80, with the technical points in play highlighted <a href="https://www.forexlive.com/news/usdjpy-inches-back-towards-test-of-key-technical-level-20240109/" target="_blank" rel="follow">here</a>.</p><p>Besides that, there continues to be much focus on Bitcoin as well with the ETF approval looking imminent. Bitcoin had a surging day to clip above $47,000 yesterday but is down 0.8% for now to $46,750.</p><p>Looking ahead to European trading today, there won't be much to move the needle in terms of data releases. German industrial production and French trade balance are among the highlights and those aren't really major releases whatsoever at this stage. As such, trading sentiment will continue to revolve around risk appetite to see if yesterday's moves can keep up before we get to the main event later in the week i.e. US CPI data.</p><p>0645 GMT – Switzerland December unemployment rate0700 GMT – Germany November industrial production0745 GMT – France November trade balance data1000 GMT – Eurozone November unemployment rate1100 GMT – US December NFIB small business optimism index</p><p>That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.</p>

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