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Risk havens soar as equities crumble..........>

FOREX
FOREX: Risk havens soar as equities crumble through key support
- A solidly down day for equities as stock markets in Asia, Europe and, finally,
the US fell sharply on renewed concern over Coronavirus and its capacity to
spread beyond China's borders. Reports of fatalities across Northern Italy, new
cases in Iran and an outbreak among the South Korean military unsettled traders,
which saw haven currencies solidly outperform at the expense of emerging market
and high beta FX.
- USD/JPY retreated well back below the Y111 mark, making gains above Y112 now
look unrealistic despite the recent rally. CHF initially rose in tandem before
EUR/CHF bounces nicely off the sub-1.06 lows, which may raise further questions
about SNB intervention. The likes of NOK, CAD, RUB and ZAR were heavily sold as
commodities retraced, prompting multi-month highs in USD/RUB and multi-decade
highs for USD/NOK. Pressure on OPEC to act to protect oil prices will likely
rise if the oil bear market persists.
- German & Mexican GDP data and US consumer confidence for February are the data
highlights Tuesday. Speeches include ECB's de Cos, BoC's Lane and Fed's Clarida.

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