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Antipodeans outperform on rebounding..........>

FOREX
FOREX: Antipodeans outperform on rebounding commodities as market drops risk
-Following the announcement of countermeasures on trade from China overnight
($3bln worth of tariffs), safe havens have been in demand, prompting USD/JPY to
drop below Y105 which, despite being tested a few times, it remains below ahead
of NY. CHF is also gathering pace early doors on the safe haven play, pressing
USD/CHF down toward the 50DMA at the Chf 0.9429 mark.
-Front-end vols are marching higher, USD/JPY 1m implied vols touched the highest
since Mar8 alongside the slide in the Nikkei 225 which, at one point, traded
lower by 4.8%.
-Commodity prices are benefiting from the trade tariff announcements, lifting
AUD and NZD to be the best performers of the day, gifting antipodean FX a relief
rally this morning.
-EUR and GBP look pretty directionless with no domestic catalyst, allowing
EUR/USD and GBP/USD to ebb higher amid modest greenback weakness.
-Canadian CPI & retail sales, US durable goods orders & new home sales the only
real data to finish off the week.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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