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Stocks sink as north-eastern States act to....>

FOREX
FOREX: Stocks sink as north-eastern States act to prevent second outbreak
- After a soft start, global equities moved lower still as the governors of
NY/NJ/CT acted to quarantine all incoming travellers from selected states that
are failing to contain infection rates. The news compiled negativity surrounding
another acceleration in growth of cases in Florida, with Houston, Texas also
warning that their ICU capacity has almost been reached.
- The net effect on currencies was to buy USD and JPY, with EUR and CHF also
benefiting. GBP's correlation with risk assets firmed, pressuring the currency
toward the bottom end of the G10 pile Wednesday. Growth proxies were similarly
soft, with AUD, NZD and NOK in retreat. CAD also traded poorly after Fitch
downgraded Canada to AA+; Outlook stable.
- Prelim May durable goods orders, weekly US jobless claims and tertiary Q1 GDP
data are the data highlights Thursday. The Turkish rate decision is also on the
docket, with the bank seen trimming rates by 25bps to 8.00%. Banxico are seen
cutting 50bps to 5.00%. The speaker schedule is similarly busy, with comments
from ECB's Schnabel, Merch and Knot, Fed's Kaplan and Bostic and BoE's Haldane.

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