Major currencies are not doing much so far on the session as the overall market mood remains rather tentative to start the new week. Treasury yields are little changed while equities are displaying a more mixed picture in European morning trade. Regional indices are higher but playing catch up to Wall Street gains on Friday, while US futures are pointing lower as investors check back after the Moody’s downgrade on the US outlook after the close last week.

That is not leaving much for FX to work with, as the dollar sits little changed and more mixed at the moment. USD/JPY continues to hold just a touch higher at 151.73 while EUR/USD is also up 0.1% to 1.0688, though the latter is holding within just a 20 pips range today. Talk about a snoozer, eh?

It’s all about key US data releases coming up later in the week and I reckon we won’t get much action later today as well. The consumer price inflation report tomorrow is the big one to watch of course, as traders will use that as a guide to reaffirm any biases from last week.

For now, it’s shaping up to be a slower and diffident start to proceedings this week. Here’s the snapshot at the moment in FX (which is not much different from when we began the day here):

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