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Risk-On Impulse Dissipates

FOREX

The initial modest risk-on impetus has dissipated, as e-minis have shed their marginal gains. Commodity-tied currencies underperform at typing, even as the kiwi had earlier topped the G10 pile. AUD/NZD trades ~20 pips worse off, as Sydney Covid-19 case count rose to a record (77), while NSW Premier Berejiklian warned that it may soon show above 100.

  • The Swiss franc is the strongest currency in G10 FX space as we type, albeit safe-haven peers USD and JPY also hold up well. USD/JPY struggled to punch through last Friday's peak, despite edging higher in early trade.
  • It is a slow start to the week in terms of global data releases, while today's central bank speaker slate features Fed's Kashkari & ECB's de Guindos.

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