Dollar in for mixed week

The dollar is likely to put in a mixed performance this week: modestly higher against the yen and weaker versus the euro. The key bullish force for dollar/yen is the gradual recovery in risk appetite, as seen in the steady narrowing of credit spreads and decline in equity volatility since November. In such environments, the dollar tends to strengthen most against the yen.

More immediate drivers, such as earnings season, should be neutral at best for the dollar. Roughly 25% of the S&P 500

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