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JPY Sold as Equities Roar

FOREX

The JPY was comfortably the poorest performer in G10 Tuesday, with USD/JPY topping the Monday high with relatively little resistance and prompting AUD/JPY to near a new multi-month high. JPY traded poorly alongside rallying equities worldwide. The Dow Jones crested 30,000 for the first time on record as further US states (notably Pennsylvania and Nevada) certified their election counts in favour of Biden).

This worked in favour of antipodean and commodity-tied FX, with NZD, AUD and NOK outperforming. NZD/USD showed above the 0.70 level for the first time since mid-2018, opening congestion resistance above of 0.7060.

Markets will likely quieten down either side of the Thanksgiving holidays on Thursday. As a result of the Thursday closures, data's frontloaded to Wednesday, with weekly jobless claims, secondary pass at GDP, trade balance, personal income/spending and durable goods orders as well as the FOMC minutes.

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