Greenback Creeps Higher As E-Minis Slip On Firmer Oil

The key gauge of greenback strength (DXY) crept higher as U.S. e-mini futures conceded some ground amid rising crude oil prices. Liquidity was limited by a market closure in Japan as the nation observed a public holiday.

• Participants took stock of Russia's ongoing invasion of Ukraine, as Turkey pointed to growing convergence on some key issues in ceasefire talks, but Kyiv rejected Moscow's demand to surrender the besieged port city of Mariupol.
• The Russian rouble was indicated higher in offshore trade. CBR Gov Nabiullina said that the central bank will buy OFZs once they resume trading on Moscow Exchange Monday, but is planning to sell them "after the situation on financial markets stabilises."
• Most G10 currency pairs meandered after oil-tied FX lost their initial allure. Australia's decision to ban alumina exports to Russia may have negated initial demand for the local currency.
• Spot USD/CNH added ~100 pips at the start to the week as the PBOC kept Loan Prime Rates unchanged and set the midpoint of permitted USD/CNY trading band fairly close to the average sell-side estimate.
• The broader data docket is fairly light during the remainder of the day, which shifts focus to central bank speak from ECB's Lagarde, Makhlouf & Nagel as well as Fed's Powell & Bostic.