Slow start to 2022 for FX markets ahead of US inflation

Today’s US non-farm payrolls report had little impact on currency markets, with the dollar set to end the week broadly unchanged against most other currencies. This extends a pattern of low volatility in FX markets over the past few weeks, leaving the DXY index near its highest level since July 2020 and “high-beta” currencies somewhat stronger as fears about the economic impact of Omicron have faded.