GBP

The pound remains steady in early trading against the dollar, after losing over 0.5 % on Friday. Sterling’s losses came after the benchmark 10-year US treasury bond rose more than 4 %, after New York Federal President John Williams and San Francisco Federal President both warned of Omicron’s impact on inflation. Despite the decline, the pair closed the fourth straight week in positive territory. Against the euro, the pound once again remains in a tight range in early trading. Traders will keep a close eye on pollical developments. According to reports in The Telegraph, Prime Minister Johnson has been questioned by senior civil servant Sue Gray, who is investigating allegations of lock down breaches.

EUR

The euro has lost some ground against the dollar after climbing to its highest level in more than two months on Friday. Rising US bond treasury yields ahead of the weekend helped the greenback find demand, after cautious comments from Federal Reserve Bank officials. With Bond and stock markets closed in in the US due to the Martin Luther King public holiday, EUR/USD is expected to trade in a relatively tight range. European Central Bank President reiterated on Friday that the central’s bank commitment to price stability remains unwavering and that the drivers on inflation are expected to ease over the course of the year.

USD

The dollar has managed to hold to gains made on Friday afternoon against its major peers in early trading. Comments from Federal Reserve bank policymakers on Friday prompted a reverse in the greenback’s fortunes having been on the decline for the most of last week. John Williams head of the New York federal Reserve Bank , said he expects the Omicron wave to temporarily prolong and intensify labour supply challenges and supply-chain bottlenecks, while San Francisco Bank Head May Daly also cited Omicron worries, as she expected the latest wave to extend the time period that inflation will remain high. Following the statements, the dollar rose in tandem with US treasury yields. No major data releases today as the US celebrate Martin Luther’s birthday with a public holiday .