Investors seemed to have already put Omicron risks behind last week, with markets turned back into risk-on mode. But the forex markets were indeed quite mixed. Commodity currencies were the strongest ones, but the rebounds are looking more like corrective. Yen was the worst performer, but the pull-backs were very shallow Dollar remain stuck in range against European majors and Yen, despite multi-decade high CPI reading. Sterling was pressured for a while on return to pandemic restrictions, but there was no follow through selling. The markets would probably need to see something noticeable from the central bank meetings (Fed, SNB, BoE, ECB, BoJ) this week to set the tone for the rest of the year. |
