<p style=““ class=“text-align-justify“>That’s a positive response to the setback from the start of trading today, with US futures having fallen by around 0.5% as we began European morning trade. The risk mood was rather sluggish early on after news that China is denying any pivot from its zero-Covid policy over the weekend.</p><p style=““ class=“text-align-justify“>That saw the dollar gap higher as well before things turned around as we got into the session earlier <a target=“_blank“ href=“https://www.forexlive.com/news/dollar-extends-fall-as-risk-appetite-recovers-from-early-setback-20221107/“ target=“_blank“>here</a>. For now, the optimism is holding as broader markets are staying steadfast to the optimistic turn after the US jobs report on Friday.</p><p style=““ class=“text-align-justify“>However, as much as stocks are hoping for a better outlook, there are still some headwinds to be noted. The US CPI data later this week will be a key hurdle to work through (especially with a more hawkish Fed) and from a technical perspective, there is still the 100-day moving average that is putting a lid on any upside price action for the time being:</p><p style=““ class=“text-align-justify“>Buyers will have to push past that to really convince of a turnaround in the trend. Otherwise, it seems like we might just be stuck with the lower highs, lower lows pattern going into year-end.</p>

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