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Markets Reverse Vaccine Trade, Working Against Antipodeans

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After securing an alltime high close Monday on Moderna's vaccine news, markets ebbed lower Tuesday, with profit-taking the most likely culprit. US equities shed around 0.5%, helping underpin a further JPY rise. USD/JPY sank through the Monday low with relatively little difficulty, although the Y104 handle support stands for now.

This worked against the likes of AUD, CAD and NZD, which were the worst performing currencies in G10 Tuesday.

GBP traded well, helping GBP/USD trade within 40 pips of the multi-month high at 1.3312 printed last week. Markets are now beginning to eye the end of next week as a key date by which to secure a Brexit deal after sources reported to Bloomberg that negotiating teams were honing in on a deal.

Focus Wednesday turns to UK and Canadian inflation data for October and US Building Permits. BoE's Haldane, BoC's Wilkins and Fed's Williams, Bullard & Kaplan are on the docket.

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