Risk Sentiment Sours

Participants were on the lookout for fresh updates on the Omicron coronavirus variant but to no avail. Growing regulatory scrutiny of Chinese companies traded in the U.S. provided another source of concern, while Fedspeak pointing to the potential for a faster withdrawal of stimulus was assessed.

• The DXY operated above neutral levels, even as U.S. e-mini futures trimmed initial losses. The dollar index showed at its highest point this month, as the greenback outperformed.
• The Antipodean currencies led losses in G10 FX space. Risk barometer AUD/JPY slipped to its worst level since Sep 23, while NZD/JPY respected recent intraday lows.
• Major crosses generally held tight ranges in Asia-Pac hours, as regional headline flow provided little in the way of fresh market impetus.
• U.S. NFP report headlines today's data docket. A raft of global Services PMI prints, U.S. durable goods orders and factory orders, Canadian jobs data are also due.
• The central bank speaker slate features Fed's Bullard, BoE's Saunders and ECB's Lagarde & Lane.