As the debate on the omicron variant continues to rage on, risk trades are leaning towards being slightly more positive upon returning from the weekend after a torrid session on Friday.
The dollar continues to keep in a favourable spot for the most part as the Fed is likely to stay on course for a quicker tapering pace and policymakers haven't been shy on talking up flexibility of hiking faster as well.
Looking elsewhere, the bond market will be a key focus on the week too as Adam pointed out here with the chart:
But for the day ahead, expect the market to focus on risk tones mostly as the world continues to wait and digest headlines and findings on the omicron variant. In terms of data, things are relatively light in Europe so trading sentiment will largely be dictated by the risk mood as such.
0700 GMT - Germany October factory orders
Amid supply bottlenecks and capacity constraints, industrial orders are estimated to drop slightly in October though this is a rather lagging data point at this stage.
0900 GMT - SNB total sight deposits w.e. 3 DecemberYour weekly check of the deposits kept at the SNB by Swiss banks. This data is a proxy for FX interventions.
0930 GMT - UK November construction PMI
Construction activity is estimated to slow further amid ongoing supply-side issues and that isn't the most surprising thing as it is a problem across the globe.
0930 GMT - Eurozone December Sentix investor confidence
As concerns surrounding the omicron variant seeps in, that is likely to weigh on investor morale towards year-end - not least with virus cases in Europe potentially bringing in fresh restrictions.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
