A little higher, a little lower, and all around we go. That’s the mood in markets this week as we continue the slow countdown to the US CPI and Fed decision next week. The dollar is now slightly lower on the day as major currencies are stretching their previously narrow ranges in European morning trade.

EUR/USD is up 0.3% to 1.0730 after hanging around near 1.0700, with large option expiries in play at the figure level. USD/JPY remains down 0.2% to 139.80 and not much changed from Asia trading, as large option expiries at 140.00 are also serving to contain price action despite slightly higher Treasury yields.

Elsewhere, the dollar is seeing light declines against the pound and loonie, with the latter looking to contest key support as outlined earlier here. The antipodeans are holding higher with some improvements in the risk mood as Nasdaq futures are now up 0.1% after having been down around 0.3% to start the session.

AUD/USD is up 0.5% to 0.6680 levels but continues to stay below key resistance from its 200-day moving average at 0.6690 for now:

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