Nuclear Plant Fire Rattles Markets, Subsequent Headlines Help Soothe Nerves

Participants fled to safety amid reports of shelling at Zaporizhzhia nuclear power plant which set parts of the facility ablaze, with Ukraine's Foreign Minister warning of a potential catastrophic escalation. Initial risk-off moves have been partially unwound amid the reassessment of risks posed by the fire in Europe's largest nuclear plant. Ukrainian officials noted that fire brigades have been allowed to enter the facility (they were fired at by Russian troops earlier) and played down the threat of radiation spread as things stand, with the fire reportedly detected in an administration building.

• Asia-Pac risk barometer AUD/JPY staged a round trip from a session low of Y84.16 as participants held their breath on reading initial headlines re: Ukraine's largest nuclear plant and breathed a sigh of relief while digesting further updates. The yen still leads gains in G10 FX space, albeit by narrower margins.
• In an already familiar price action scenario, Scandinavian currencies came under pressure from the initial headlines, with regional contagion risk in play. EUR/CHF round tripped from a session low of CHF1.0117, a fresh multi-year low, but is now back to neutral levels. The Scandies continue to trade on the back foot.
• U.S. NFP report headlines the global data docket today, with EZ retail sales also due.