Yields are lower and stocks are slightly higher but the dollar is finding itself in a steadier spot so far on the session. It was slightly softer earlier in Asia but now, we are seeing dollar pairs keep little changed with most trading flattish. That being said, the ranges for the day leave a lot to be desired. For example, EUR/USD is only stuck within a 28 pips range or so.

The aussie and kiwi are maintaining a light advance but off earlier highs, and the ranges are also relatively narrow against the dollar. In other words, it’s all still to play for in the trading day ahead.

The main focus is on the US CPI data release, so don’t expect any fireworks before we get to that. This will make the next few hours a rather inert one for European traders.

In the aftermath of the release, USD/JPY might hold some interest after yesterday’s break above the 145.00 mark. We’ll see if the pair can hold a break above that on the inflation numbers with key resistance then seen at the 50.0 Fib retracement level of the swing lower from November to December, seen at 146.07.

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