Lockdowns & Retreating Oil Roil Risk In Early Trade

A mix of risk-off catalysts has generated defensive flows across G10 FX space at the start to the week. Deepening lockdowns across mainland Europe & the UK have concerned participants, while supply-side matters have weighed on oil prices, adding pressure to commodity-tied FX. The likes of AUD, NZD, CAD and NOK are the worst G10 performers as we type, while USD has taken the lead. Broader impetus has outweighed regional data releases.

• Cautiously positive Brexit news may have brought some mild relief to GBP, as source reports suggested that the UK & EU have moved closer to reaching agreement over fishing rights. That being said, sterling has struggled to recover initial losses, after PM Johnson placed England under a four-week lockdown, with cabinet ministers pointing to the potential for extending restrictions.
• A muted start for Asian EMFX, with USD/CNH holding a tight range in the lead-up to the PBoC fix. The Philippines observe a public holiday.
• Plenty of manufacturing PMI readings from across the globe, including China's Caixin & U.S. ISM gauges, will be trickling out today. Central bank speaker slate features ECB's Rehn & Mersch.