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EUR Sinks, Bunds Bounce as Lockdowns Loom Across Europe

CROSS ASSET
  • Bund futures trade solidly, rallying around 40 ticks to touch fresh session highs of 171.74, with the EUR coming under decent selling pressure to show below the Thursday lows as markets watch lockdown headlines across Europe.
  • Austria formalize expectations by announcing a nationwide lockdown for both the vaccinated and unvaccinated, bringing in compulsory vaccination rules from February. Elsewhere, German health minister Spahn unsettles markets by stating a lockdown in Germany cannot be ruled out.
  • Much of the pressure seen in EUR/CHF, which extends the break below the 1.05 handle to hit fresh multi-year lows of 1.0476.

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