Wall Street's main indexes suffered heavy losses on Friday and the benchmark 10-year US Treasury bond yield fell sharply ahead of the weekend, making it difficult for the dollar to outperform its rivals
Ahead of IHS Markit's preliminary January Manufacturing and Services PMI surveys for Germany, the euro area, the UK and the US, the greenback is holding its ground with the US Dollar Index posting modest gains above 95.70. The Federal Reserve Bank of Chicago's National Activity Index and the Federal Reserve Bank of Dallas' Manufacturing Business SUrvey will also be featured in the US economic docket.
At the start of the week, the market mood seems to be improving. During the Asian trading hours, the People's Bank of China announced that it lowered the rate on the 14-day reverse repo by 10 basis points. Reflecting the risk-positive environment, the US stocks futures indexes are up between 0.65% and 0.85% in the early European morning. Last week, the S&P 500 fell 5.8% and registered its largest one-week drop since the beginning of the coronavirus pandemic.