Firmer Oil Supports Commodity FX, Sterling Resumes Losses

Antipodean currencies lead gains ahead of local central bank meetings this week, with firmer oil prices lending support to the commodity-tied FX space. Crude oil has been bolstered by weekend reports pointing to talks among OPEC+ members on a potential major output cut. The group is set to meet on Wednesday and may trim production by the most since the COVID-19 pandemic.

• Sterling resumes its decline as UK government continues to defend its controversial fiscal plans, even as S&P revised the UK's credit outlook to negative, while PM Truss is struggling to contain a brewing backbencher rebellion.
• The CHF has outperformed all its European G10 peers save for the NOK, with the space experiencing some light risk aversion after Russia's Gazprom halted natural gas deliveries to Italy.
• The BBDXY index has almost erased its initial losses, even as U.S. Tsy yields have slipped across the curve, with steepening impetus evident.
• Public holidays in China, South Korea and some Australian states limit regional activity at the start to the week.
• Manufacturing PMI readings from across the world, as well as comments from Fed's Bostic & Williams, BoE's Mann & Riksbank's Floden will take focus after Asia hours.