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FOREX: Havens Outperform as Tech Outages Hinder Global Operations

FOREX
  • The strong USD backdrop so far Friday is persisting into the NY crossover, with the USD Index extending the bounce off yesterday's lows to near 0.7% and narrowing in on the 200-dma of 104.388.
  • Flight to safe havens and a broad risk-off theme remains the key driver here, with the spillover effects of the bad patch from Crowdstrike grounding flights globally, impacting exchanges, stopping some electronic payments and interrupting global newsflow. 
  • Resultingly, the JPY is real outperformer, prompting EUR/JPY to ease off yesterday's highs and re-orient focus on the gravitational influence of the 50-dma at 170.82. 
  • Risk and growth proxy currencies are among the poorest performers, keeping Scandi currencies weaker against all others in G10. USD/NOK has cleared to new multi-month highs, taking out 10.8699 resistance in the process - the 61.8% retracement for the downleg off the early May high.
  • Focus for the duration of Friday trade turns to Canadian retail sales data for May and appearances from Fed's Williams and Bostic.

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