USD Firms A Touch As Asia Reacts To Firmer U.S. PPI

An early move higher in the DXY is still intact, although the move away from session highs in U.S. Tsy yields saw the early greenback rally moderate a little. Nonetheless, the USD retains its place atop the G10 FX table after Asia-Pac participants reacted to Friday’s post-U.S. PPI moves. Headline flow remains light, leaving wider risk appetite and cross-asset flows at the fore.

• E-minis are little changed to a touch lower, while the major Asia-Pac indices are softer on the day.
• The latest round of COVID-related headlines out of China did little to inspire price action, with further signs of rollback re: some restrictions meeting talk of a relatively rife spread of cases, despite a moderation in reported case numbers as testing requirements in the country loosen.
• CAD bested all of its G10 peers, save the USD, aided by a modest uptick in oil prices, although the move in crude faded.
• UK economic activity data provides the highlight of the London docket, with the U.S. CPI data and a raft of central bank decisions (headlined by the Fed, ECB & BoE) providing the focal points of the global docket later in the week.