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Havens in favour as Trump ups the ante on.....>

FOREX
FOREX: Havens in favour as Trump ups the ante on Iran
- JPY was, by a distance, the best performing currency in G10 Friday, with
markets seeking safe havens after the late-Thursday targeted strike on Iran's
most senior military general. The trade-weighted JPY hit the best levels since
late November in response, helping support the pretty firm move higher in
implied volatility across most major pairs. Iran pledged swift retribution,
helping keep oil and precious metals prices bid.
- The greenback was generally favoured until a woeful ISM manufacturing PMI
number, with particular weakness seen in the employment subcomponent. The data
helped catalyse a decent intraday recovery in EUR/USD, which looked to finish
broadly flat on the day. 
- Japan return from their prolonged New Year break Monday, which should add some
liquidity and volumes to the Monday session. Attention turns to any further
fallout from Iran after the targeted strike, the return of UK parliament after
Christmas recess and data including ISM non-manufacturing PMI, Eurozone CPI
figures and the Canadian and US December jobs reports.

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