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Risk Off Pervades, Boosting JPY, USD

FOREX
  • Stocks traded on the backfoot from the off Monday, with US futures pointing to a negative open on Wall Street later today. Downside in stocks and persistent pressure on global government bond yields have buoyed haven currencies, resulting in JPY and USD being among the strongest in G10 ahead of the NY crossover.
  • As equities slip, commodities are trading poorly, resulting in WTI and Brent crude futures touching the lowest levels of the month. This has worked further against oil-tied FX, with CAD and NOK among the poorest performers of the day.
  • EUR/USD downside sees the pair touch the lowest levels since April, narrowing the gap with key support and the bear trigger at the year's low of 1.1704.
  • There are no major data releases due Monday, keeping focus on the central bank speakers slate. BoE's Haskel and ECB's Perrazzelli are due to speak. Earnings season continues, with healthcare, tech and communication services taking focus.

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