The dollar is on the defensive in the early part of the European session. This is most noticeable on USDJPY, which is now below the 118.50 level. The price action is not more indicative of a dollar correction after the volatility seen in the wake of the Fed decision, rather than a pause in the up-trend. This could well serve to increase FX volatility into the end of the month as longer-term players are forced to re-consider their positioning. Elsewhere, the dollar correction is also apparent vs. all the other majors, the Aussie the one proving to be the most reluctant at the time being.

Once again, headlines surrounding Greece are plentiful, with Greece to deliver its latest reform plan this coming Monday. Meanwhile, Greece is doing the equivalent of looking under the sofa and anywhere else it can in order to gain the cash it needs to meet its upcoming obligations. These repayments peak in the middle of the year, where a longer-term plan needs to be in place. For today, we see UK retail sales data at 09:30 GMT, with the usual weekly claims data form the US as 12:30 GMT. Overnight, inflation data is seen in Japan, which could well mean greater than usual volatility on the yen.

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By FxPro