EUR/USD continues to keep around 1.0030-50 with the low earlier touching 1.0007 as the euro stays vulnerable close to parity. The outlook for the single currency is still rather poor as outlined here. But today, it is all about the dollar as the market keeps its focus on the US CPI data set to be released later in the day.

USD/JPY is holding slightly higher around 137.10-20, up 0.2%, as buyers stay buoyed in search of a further breakout this week. The retreat in Treasury yields yesterday tempered with the mood but we are seeing things pick up again today. Meanwhile, GBP/USD got a light nudge higher earlier to 1.1935 on the back of better-than-expected UK monthly GDP data but it came with a caveat.

Better health services on the month provided an outlier and the pound found little to be optimistic as such, with cable back down now to 1.1890 on the day – keeping rather flattish.

Looking elsewhere, the mood in equities is rather mixed with European indices holding lower while US futures are up slightly. That said, I wouldn’t look much into it until we get to the US CPI data later today.

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