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Summary - Risk-Off Spurs Safe Haven Turnaround

FOREX
  • The Greenback was a beneficiary as virus fears hit global sentiment and risk was trimmed. Global indices remained heavy throughout the US morning and the Dollar Index reversed all prior losses to briefly turn positive on the day.
  • EURUSD after trading with a bid tone all morning, marginally failed to make a new recent high at 1.2309 and finally gave in to the equities weakness, trading back down to 1.2255 amid the USD demand. USDJPY remained stable and flat on the session as haven flows into both currencies limited the pair's range.
  • GBP came under heavy pressure as UK's Johnson announced he will address the nation later today to announce further restrictions. As the case count continues to mount, the BBC have reported he is likely to announce a lockdown similar to measures imposed in March. Cable is down 0.85% having briefly tested above the 1.37 handle earlier in the day. EURGBP has seen a larger move and is currently up 1.2% at 0.9045.
  • AUD(-0.53%), NZD(-0.42%) and CAD(-0.46%) all saw outflows as Equities traded lower, having previously traded higher following positive sentiment during Asia and European sessions.
  • A sharp move lower in WTI Crude futures (Down 2%) translated into a turnaround in currencies such as USDBRL (+1.31%), with EURNOK and USDRUB reversing and both ending towards their best levels.

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