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Market favours havens as Sino-US tensions.....>

FOREX
FOREX: Market favours havens as Sino-US tensions ratchet higher
- Sino-US tensions deteriorated further, with White House representatives
talking up the prospect of economic measures against China should they press
ahead with plans to restrict security laws in Hong Kong. As a result, equities
were in retreat for much of the Friday trading session, but falls were modest
relative to the 5+% pullback in local equities.
- Nonetheless, markets traded defensively, with JPY and USD on the front foot at
the expense of AUD, NOK and EUR.
- Data was of little consequence to markets, with markets watching various White
House figures including Secretary of State Pompeo's suggestions that the US
could move to punish Beijing over Hong Kong tensions. The risk-off themes worked
against commodities, with WTI and Brent crude futures retreating around 3%
apiece.
- The coming week will likely see a slow start, with UK and US on bank holidays
Monday. IFO and regional CPI data from Germany, US GDP data for Q1 and MNI
Chicago PMI are the data highlights.

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