A risk-off start to the session

The dollar is gaining solid ground across the board, aided by continued risk aversion as we get things going on the session. S&P 500 futures have dropped by 0.6% while US 10-year Treasury yields are seeing a drop of 4.3 bps to 0.903% currently:

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The mutated virus from the UK is contributing to fears across the region, with the newest strain said to be 70% more transmissible than existing ones in circulation.

That is seeing more and more countries step up precaution and travel ban, emanating a more defensive risk posture as we get things going in the new week.

One can argue that it is also a convenient "excuse" after the market and risk trades have kept up a solid rally since November amid vaccine optimism in recent weeks.

I mean, with year-end trading conditions a factor to consider, it is hard to chalk this up as any major turning point in the whole virus crisis for the time being.