The dollar is keeping steadier so far in European trading, as risk sentiment is looking a bit nervy to start the new week. The greenback is mostly higher across the board, only down marginally against the Japanese yen. In the bond market, Treasury yields are a touch higher so that is perhaps helping to give the greenback a bit more of a steadying hand on the session.

10-year Treasury yields are up 2.5 bps to 4.249% currently. Meanwhile, S&P 500 futures are down 0.3% so that isn’t doing much to help commodity currencies at the moment.

AUD/USD is down 0.4% to 0.6645 while USD/CAD is up 0.4% to 1.3545 as oil prices are also sitting lower on the day.

The euro continues to struggle after last week’s fall, following softer inflation data which sped up ECB rate cut odds to April next year. EUR/USD is down 0.2% to 1.0863 as the retreat from the highs around 1.1000 continue to play out for now.

There’s not much else to work with to start the new week, as market players are eyeing major central bank decisions this week and the next. Adding to that will be the US non-farm payrolls and US CPI data. As such, those will be more important risk events to drive trading sentiment, as opposed to the slower pace we’re seeing so far.

In other markets, gold is down 0.2% to $2,067 currently after a surge higher earlier today, which begs the question: Has gold peaked too early in the cycle?

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