Market see-saw continues, with Eurozone.......>

FOREX: Market see-saw continues, with Eurozone periphery hit hard

- Fragile sentiment and volatile price action extended further into the

Wednesday session, as headline risk remains the key focus for markets. La Stampa

reports in Italy that the current lockdown status could be extended into early

April came as little surprise, but certainly unsettled government bond markets.

Italy's BTP market sank in response, prompting Italian-German short-end yield

spreads to widen to multi-year highs. In the 10y sector of the IT curve, yields

rose at their fastest pace since for just shy of a decade.

- As a result, JPY is the strongest in G10, with the USD not far behind. Growth

proxy currencies remain the hardest hit, with EMFX and the likes of NZD, AUD and

CAD the weakest in G10. AUD/USD plumbed new multi-decade lows, although JPY and

CHF are yet to materially benefit so far from safe haven flow. Equities globally

are lower, with S&P futures already hitting limit down levels.

- US housing starts/building permits and Canadian CPI are the data highlights

Wednesday. The Brazilian central bank rate decision is also due, where the bank

are seen trimming rates by 50bps.