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Havens favoured as geopolitical risk..........>

FOREX
FOREX: Havens favoured as geopolitical risk ratchets higher
- News that the US President personally ordered a targeted airstrike that killed
one of Iran's top military generals at Baghdad airport underpinned a firm rally
in haven currencies and the greenback this morning, tipping the JPY and USD to
the top of the G10 leaderboard early Friday. The USD index now sits at the best
levels of 2020, keeping the likes of AUD, EUR, GBP under pressure as they hold
at / near the day's lows. Iran have pledged that "severe retaliation" is in
store for those who carried out the attack, which has helped keep equities under
pressure and core fixed income bid.
- The JPY trade-weighted index is now above the December highs, rallying
alongside both WTI and Brent, which are up around 3.5% at pixel. WTI crude
futures rose to just shy of $64/bbl, the highest since mid-May, and above the
levels seen after the drone attack on Saudi Arabian oil installations in
September.
- Focus turns to any further Iranian response to the US attack as well as
December ISM manufacturing numbers and the FOMC minutes at 1900GMT/1400ET.

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