Dollar Holds Firm

While the USD has gained across the board against DM FX, price action has been relatively contained during the European morning session.

• Dollar gains come amid a mixed performance in equities and a sell-off in European government bonds, with the latter potentially reflecting a shift in sentiment with respect to the Omicron variant, which now appears less deadly than initially feared despite surging case volumes.
• Scandinavian currencies have marginally underperformed, while USDCAD is close to flat on the day.
• In the EM space, TRY remains under pressure and off 3% against the dollar. The most recent weekly FX reserve data showing that the CBRT has been drawing down foreign currency holdings through the end of November and into December.