Dollar Soars on Multi-Year High PMI

Stellar PMI data saved an underperforming greenback Monday. The USD was lower against most others in G10 the majority of European hours, but a multi-year high turnout in the November PMI numbers propped up the greenback, with follow through steepening in the US curve also lending some support. While it's unlikely a higher than expected PMI will swing the needle at the Fed in December, it could point to further strength in the PCE, Michigan, and Chicago PMI releases later in the week.

The JPY was the poorest performer in G10, sold alongside the uptick in the greenback and equity markets, with AstraZeneca's addition of another vaccine candidate helping bolster sentiment.

GBP outperformed as negotiators meet in an attempt to finalise any Brexit deal this week - reports on both sides of the channel appear encouraging on this front.

Focus Tuesday turns to November German IFO and US consumer confidence data. The speaker schedule includes RBA's Debelle, ECB's Lagarde & Lane, BoE's Haskel, BoC's Wilkins and Bullard & Williams of the Fed also speak.