Themes

• General mood is “risk off”
• Consolidation of overnight whipsaw the major bias, gold slightly firmer
• Markets still in a risk off posture, awaiting fresh incentives

What’s Moving

Very little excitement in Asia today. The Big Dollar largely consolidated overnight moves throughout Asia, with no extensions of the overnight ranges. Gold was slightly firmer on bargain hunting after the recent dip.

A mixed bag of data (Japanese Manufacturing PMI stronger; Chinese Caixin PMI weaker) was shrugged off.

Thoughts

A swag of data to be released in Europe today and ADP Non-Farm Payrolls in the states will define short-term movements in currency trading tonight. But the market will be awaiting any further comments about tapering from the Fed, or any fresh news regarding the new Omicron Covid strain.

Data tonight sees:

• German Retail Sales (E: +1.0%)
• Swiss CPI (E: -0.1%)
• French Manufacturing PMI (E: 54.6)
• German Manufacturing PMI (E: 57.6)
• Euro-zone Manufacturing PMI (E: 58.6)
• UK Manufacturing PMI (E: 58.2)
• US ADP Non-Farm Employment Change (E: 525k)
• U.S. Final Manufacturing PMI (E: 59.1)
• U.S. Crude oil inventories (E: -1.5mln)