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Oil Fuels Rally In Commodity Currencies, Safe Havens Lose Appeal

FOREX

Major commodity-tied currencies staged a rally as crude oil prices extended gains amid supply concerns fuelled by the ongoing Russian assault on Ukraine. The Antipodeans led gains overnight, with CAD and NOK breathing down their necks.

  • Safe havens lost their allure as U.S. e-mini futures operated in the green. The yen and franc were among the worst G10 performers, while the greenback was little changed.
  • This is not to say that the Russo-Ukrainian war was forgotten. The rouble was indicated lower in offshore trading, with USD/RUB adding more than 1.5 figure and oscillating around the RUB110 mark.
  • Contagion risk continued to sap strength from the SEK, which landed at the bottom of the G10 pile. EUR/SEK came within a whisker of its near two-year high printed on Tuesday.
  • U.S. ADP employment change, German unemployment & flash EZ CPI as well as a monetary policy decision from the BoC take focus from here. The central bank speaker slate is tightly packed, with a congressional testimony from Fed Chair Powell providing the main highlight.

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