Commodity currencies lead the charge
It's all about risk as we begin the new trading week as equities and oil are showing signs of life to start the day. The latter is seeing some retracement after the rout on Black Friday and that's helping to bid up the loonie so far.
Meanwhile, improved sentiment in Asian equities - and also E-minis, which are up by 0.6% - is helping to keep the aussie and kiwi underpinned while also weighing down the yen ahead of the open in Europe.
I would expect European equities to show the same kind of relative poise seen in trading so far but do be reminded that Europe tends to offer the twin issues of Brexit and Italy which could help to cast some dark clouds over risk sentiment, subject to headlines.
The pound had some good news that the EU27 members passed the withdrawal agreement without much hassle, but there's still no convincing signs that Theresa May will be able to get it through a meaningful vote in parliament and the quid is rather sidelined on the day now.
Meanwhile, the dollar sits near the bottom of the pile as risk trades are dominating proceedings so far. For the greenback, all eyes will turn towards Powell's speech on Wednesday for any further clues on the Fed's rate hike cycle next year. So, make sure to mark that down on your calendars.
