This Tuesday the Euro, rebounded from near parity against the dollar and pushed into positive territory in volatile London trading.

Unlike the greenback, the euro rose 0.2% to $1.0057 after falling 0.4% to $1.00005 earlier. This increase dragged the dollar index down, with the unit trading at 108.03. Due to the drop in oil prices the Canadian dollar weakened even as Canada's yield curve inverted again in anticipation of an oversized interest rate hike expected this week by the Bank of Canada. Investors are awaiting U.S. inflation data on Wednesday, which could help guide expectations for further aggressive tightening by the Federal Reserve. It is worth noting that this is the first time since March 2020 that the Canadian curve has inverted, a phenomenon that some investors see as a signal of recession risks ahead.