A dent to risk sentiment or is this the start of a potential reversal? Things are certainly heating up ahead of next week’s US CPI data release. For today, we might get a bit of a teaser on the market’s appetite or angst with German inflation on the data docket.

Meanwhile, the yen is also continuing to be rather jumpy on any headlines involving the BOJ. That is something to be mindful about with the list of candidates to succeed Kuroda possibly being released any time after tomorrow. It’s pretty much a ticking volatility timebomb for the yen at the moment.

As for dollar pairs, I shared my thoughts via the technical outlook pointed out here. And I’d be watching the 4,100 line in the S&P 500 as that will determine any major switch back in trading bias for risk as we look towards the latter half of the week.

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