Themes

• General mood is “risk on”
• Pfizer says three doses protects against Omicron
• Canada leaves interest rates unchanged at 25bps, as expected

What’s Moving

Reports late in Europe from Pfizer that three shots of its Covi vaccine neutralizes the Omicron variant saw a little bit of support enter the market into the U.S. open. This news mainly helped U.S. stocks finish with their third straight gain.

Currencies saw a continuing to the “risk on” posture after the Pfizer news. This did little to break pairs from recent ranges but did see some USD sales across the board. Commodity currencies saw the best buying, with the AUD and CAD gaining well on the day.

Sterling remains weak however, with PM Johnson extending face mask requirements in the U.K.

Thoughts

Asia will open to continued consolidation today, with late week position adjustment expected to dominate dealings.

Chinese CPI (E: 2.5%) and PPI (E: 12.1%) will be the focus today.

While later tonight sees U.S. Initial Claims numbers.

Pivot Points