Themes

• General mood is “risk neutral”
• Japanese Tankan repot comes in mixed, Yen spikes lower, then recovers   
• Sterling weaker as Omicron fears continue to grip

What’s Moving

Very quiet Asian session to start the week this week, with light volumes noted across all of the majors amid a lack of fresh incentives from offshore trade on Friday night.

Having said that, there were two movers on the day, with Sterling weaker after comments over the weekend from UK PM Johnson that he is concerned about the Omicron strain of Covid.

The other mover was the Yen, which gapped weaker on the mixed Tankan report, before bouncing back to pre-data levels as the market digested the data. The Manufacturing Tankan came in at 18 from talk of 19, while the Non-Manufacturing Tankan came in better at 9 from talk of 5.

There is little of consequence slated for release in the European and U.S. sessions tonight and players will eye movements in equities and commodities for currency trading incentives.