Initial risk aversion dissipated, giving......>

FOREX: Initial risk aversion dissipated, giving way to renewed risk-on flows.

Although Asia started the week with a defensive feel, amid concerns over the

Covid-19 situation & geopolitics, G10 crosses unwound earlier moves, even as

regional news flow was thin. Safe havens USD, JPY & CHF help bring up the rear

in the G10 basket, while the Antipodeans top the pile. RBA Gov Lowe said that

it's hard to argue that AUD is overvalued, although he "would like a lower one

because he'd like lower unemployment and slightly higher inflation".

- GBP/USD weathered aforementioned risk-off flows, amid reports pointing to a

potential for a temporary VAT reduction & further relaxation of lockdown

measures in the UK. Cable then crept higher as broader sentiment improved.

- USD/ZAR popped higher after South African FinMin warned that the nation's

public debt may exceed 100% of GDP in 2025, but the pair shed gains later on.

- CSRC Vice Chair Fang said nothing new as he noted that China should accelerate

the internationalisation of the yuan. The redback held a tight range.

- The economic docket is light today, with U.S. existing home sales due. ECB's

de Guindos & Lane, as well as BoC's Macklem will speak.