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China Covid Backdrop Weighs On Risk, JPY and Euro Crosses Boosted

LATAM
  • Protests against Covid restrictions have spread to more cities in China, as they continued for a second night.
  • A more typical risk off scenario playing out across currency markets with a firmer JPY, continuing its impressive rebound, as well as higher Euro crosses, with the likes of EURAUD rallying 1.4%. An additional tailwind for the Euro was the latest rhetoric from governing council member Knot who said risks to the outlook for consumer prices are still skewed to the upside, despite the euro area facing a recession.

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