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Haven Currencies Make Some Headway

FOREX

Friday was a broadly risk-off session, with equities soft, bonds strong and haven currencies in demand. The greenback and the JPY were the firmest currencies across G10, with markets responding to reports of fractures in the Pfizer/BioNTech supply chain, poorly received earnings from some of the US' largest banks and a lower-than-expected deluge of US data.

USD, JPY strength resulted in EUR/USD hitting new multi-week lows, just to find some support at the 1.2082 50-dma and sent AUD/JPY lower by as much as 1.3% from the day's high. Commodity tied FX traded poorly, with AUD, NZD and NOK all suffering.

Focus in the coming week remains on US earnings season, with reports due from some of the largest US banks as well as Netflix, UnitedHealth and IBM. The week should start slowly with a US public holiday Monday before central banks take focus. Decisions are due from the BoC, ECB and Norges Bank.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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