JPY, USD Sharply Higher as Risk-Off Gathers Pace

After a somewhat quiet start, risk-off is gathering pace ahead of the NY crossover, with JPY, USD sharply higher against all others in G10. Renewed fears over a fresh, more infectious mutation of COVID-19 in the south-east of England has been a primary driver, but stocks are also trading poorly ahead of the inclusion of Tesla in the S&P500 for the first time - their shares are lower by over 5% ahead of the open.

At the bottom of the pile, NOK has reversed recent outperformance, falling against all others as crude prices fall sharply. WTI and Brent are lower by over 5% apiece, knocking commodity-tied currencies across the board.

GBP is also suffering, with the lack of progress in Brexit negotiations knocking sentiment as well as severe controls on cross-border trade due to the new COVID strain. GBP/USD fell through 50-dma support at 1.3207, extending losses to over 300 pips.

Data releases are few and far between Monday, with just Chicago National Activity Index and Eurozone consumer confidence on the docket. There are no speakers of note.