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Defensive Feel Persists

FOREX

Risk retreat has resumed in Asia, following a sharp reversal in key U.S. equity indices during Thursday's Wall Street session. The familiar themes of looming Fed tightening and global geopolitical tensions have conspired to undermine market sentiment, with idiosyncratic headwinds for Netflix & Peloton rubbing salt into existing wounds.

  • The yen has gained the upper hand with participants seeking safe havens. USD/JPY has staged a clean break below the Y114.00 mark, printing its worst levels in a week.
  • Weakness in crude oil has spilled over into commodity-tied FX, after a report from U.S. EIA showed an unexpected gain in domestic crude stockpiles.
  • The Aussie is the worst performing G10 currency. AUD/USD has tumbled below the $0.7200 figure, giving away all of its gains registered in the wake of Thursday's release of strong jobs data out of Australia.
  • UK retail sales & advance EZ consumer confidence headlines today's data docket, with comments coming up from ECB's Lagarde & BoE's Mann.

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