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Defensive Mood Music Subsides

FOREX

The defensive impetus has eased a tad, despite the absence of any unambiguously reassuring headlines. Safe haven currencies have lost ground, with the yen leading losses. The Antipodeans have found poise, with SEK also posting some gains.

  • Early Asia hours saw spot USD/RUB indicated sharply lower in offshore trade, before the pair recouped the bulk of initial losses. The initial sell-off was largest since 1998, with thin liquidity likely playing a role here. Note that Moscow markets are shut for a national holiday today.
  • Final EZ GDP, German industrial output, Canadian trade data as well as U.S. trade balance & wholesale inventories take focus on the data front today.

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