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CNH Surges On China Covid Optimism, Central Bank Decisions In Focus

LATAM
  • Currency markets have adopted a generally risk-on tone, with focus on the growing possibility that Chinese authorities could roll back COVID restrictions at a faster pace than previously expected. JPY is comfortably the poorest performer in G10 with the Chinese Yuan surging around 1.5%.
    • Price action has put USD/CNH comfortably below 7.00 to hit 6.9373 - the lowest since mid-Sept - with the likes of iron ore, local equities and AUD also higher to reinforce the risk-on.
  • Focus turns to the US ISM Services Index for November, seen slipping to 53.3 from 54.4 previously. Final durable goods orders number also cross. ECB's Wunsch is the sole speaker on the docket. The Fed have now entered their pre-decision media blackout period.
  • In LatAm, Chile, Brazil and Peru central bank decisions are due this week.

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