Broader USD A Touch Lower, EUR/GBP Holds above GBP0.8600

The broader USD (BBDXY) trades a little below late Friday levels, with Asia-Pac participants reacting to Friday’s broader market moves, the lack of political escalation over the weekend and U.S. fiscal support for Ukraine.

• CHF softens vs. all G10 peers with e-minis ticking higher. Note that the SNB lifted the minimum reserve requirement for banks this morning. This isn’t a particular gamechanger for the currency, but the initial reaction has been one of very modest CHF strength, owing to expectations re: liquidity dynamics. Note that the SNB had flagged the need to assess UBS’ capital requirements in recent weeks, but this goes beyond that. Watch Swiss banks on the equity open.
• EUR/GBP extended on Friday’s bullish range break. Friday’s dovish commentary from BoE Deputy Governor Ramsden leaves the pair above GBP0.8600. Friday saw the first close above that figure since Mid-January. An extension through Asia highs would target the 50.0% retracement of the Nov 20-Feb 14 bear cycle (GBP0.8633). Continued speculation re: further fiscal easing in the UK dominated local headline flow over the weekend, while ECB-speak wasn’t a gamechanger.
• USD/JPY has edged higher but failed to breach range highs.
• A downtick in crude oil weighs on the NOK.
• ECB-speak from Lagarde and Villeroy headlines a limited macro calendar on Monday, which will leave broader headline flow and geopolitical matters at the fore for most of the day.
• A reminder that the Fed is now in its pre-meeting blackout period.