Dollar keeps slightly firmer in European morning trade

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USD/JPY is still the main pair to watch and it is trading up 0.2% to 125.60 levels, with the high having touched 125.75 at the start of the session. Buyers are keeping a break above 125.00 and that remains the key level to watch on the week. US consumer inflation data later on will be the next key risk event to watch, so be wary of the market reaction to that.

Besides that, the euro and pound are keeping slightly lower against the dollar. EUR/USD is down to 1.0865 from around 1.0880 earlier while GBP/USD is coming close to test the 1.3000 level again from around 1.3030 coming into the session:

The aussie and kiwi are little changed against the dollar but it isn’t anything that really stands out. AUD/USD is trading up 0.2% to 0.7435 as buyers keep a defense of 0.7400 for now.

Overall, the dollar remains underpinned as stocks are sluggish and as bond yields continue to push higher on the week.

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