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Dampening Risk Sentiment Further Boosts JPY, Limited Global Data Due

LATAM
  • The USD Index practically unchanged for the session as currency markets focus on the strengthening yen, which picked up momentum overnight after USDJPY plummeted through 131.50 support. The pair is narrowing in on the next key support at the 100-dma of 130.24, a level last crossed in September 2021.
  • Heightened political tensions surrounding the potential Chinese retaliation threat over Speaker Pelosi’s possible trip to Taiwan are keeping risk on the backfoot, with a notable 2% nosedive for AUDJPY and heavy price action across major equity benchmarks.
  • Data are few and far between Tuesday, with just the US JOLTS data on the docket. The speaker slate could take more interest, with comments from Fed's Bullard, Mester and Evans all due.

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