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Commodity-tied FX were ravaged as Saudi.......>

FOREX
FOREX: Commodity-tied FX were ravaged as Saudi Arabia slashed its crude prices &
reportedly plans to ramp up output. The news hammered oil mkts & unleashed
strong risk-off flows, magnified by spiralling Covid-19 worry & North Korea's
missile tests. USD/NOK spiked to best lvls since 1985, USD/CAD showed at lvls
not seen since 2017. USD/MXN & USD/ZAR each logged a four-year high. A powerful
bout of risk-off flows emerged later in the session, suddenly knocking the
Antipodeans down & prompting the breaches of former extremes elsewhere. AUD &
NZD hit fresh multi-year lows vs. USD before paring the bulk of losses. USD/JPY
probed water below Y102, strengthening in tandem with renewed sales of
high-yielding MXN & ZAR, which pointed to Mrs Watanabe as a possible culprit.
- Cratering oil prices dragged IDR & MYR lower, but KRW still ended up as the
worst Asian EM currency, even as softer oil may have cushioned its decline a tad
(S. Korea is a net importer of crude). USD/KRW ticked off highs as local off'ls
tipped hats to "excessive" moves in KRW. They are set to meet later today.
- Coming up later today are German industrial output & trade balance, Canadian
housing starts/building permits & comments from ECB's Rehn.

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