Themes

• General mood is “risk off”
• Consolidation of overnight moves the only major flow of note amid a lack of data
• USD firming against Sterling, The Aussie and the CAD into the European open

What’s Moving

EUR/USD traded 11 pips in Asia today which pretty much sums up our session. After a flight bid overnight on concerns about Omicron and ahead of the FOMC meeting, Asian traders marked time and the lack of fresh trading incentives.

Early European players are now coming in to buy the Dollar against Sterling, The Aussie and the CAD, but the volumes are light, and the move is expected to fizzle out.

Thoughts

We are not expecting anything too big tonight ahead of the FOMC meeting on Wednesday. There is a little bit of data coming out today, which may prompt some sort-term fireworks, but expect recent ranges to continue.

Data tonight includes:

• U.K. Unemployment Rate (E: 4.2%)
• Swiss PPI (E: +0.5%)
• Euro-zone Industrial Production (E: 1.2%)
• U.S. PPI (E: +0.5%)