Greenback Takes Lead Amid Hawkish Fed Expectations, Risk-Off Mood Music

The greenback is up along U.S. Tsy yields and e-mini futures have lost ground as hawkish Fedspeak is doing the rounds. During NY hours on Friday, Fed's Barkin told MNI that "anything would be on the table," including an outsized 75bp rate hike.

• U.S. dollar strength has driven USD/JPY to its best levels since Apr 28, when the pair printed its multi-decade high of Y131.25. This figure provides the next firm layer of resistance.
• Risk-negative weekend headline flow has helped to spoil risk sentiment, with focus on a North Korean missile launch and cautious rhetoric from Chinese Premier Li on the domestic labour market. There is also potential for fresh developments in Russia's invasion of Ukraine, with President Putin set to deliver his annual Victory Day address today.
• Commodity-tied FX underperform amid softer crude oil prices. Weakness in the space may be linked to Saudi Arabia's decision to trim crude prices for Asian buyers, despite the announcement from G7 leaders that they would phase out Russian oil imports.
• Offshore yuan has gone offered from the off, presumably in reaction to downbeat comments from Premier Li. The imminent fixing of USD/CNY trading band mid-point will draw attention after the PBOC's repeated pushbacks against redback depreciation over the past few sessions.
• China's trade report headlines the Asia-Pac data docket at the start to the week.