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Taking Breather

FOREX

High-beta G10 currencies have found some poise amid the general continuation of familiar dynamics in the Russo-Ukrainian war, with crude oil prices extending their rally. The likes of AUD, NZD, CAD and NOK top the G10 performance table.

  • JPY and CHF have slipped amid reduced demand for safe havens, albeit it should be stressed that most major currency pairs hold familiar ranges.
  • The greenback (as measured by the DXY index) has ebbed lower ahead of President Joe Biden's State of the Union address, in which he is expected to pledge a firm stance re: Russia's aggression against Ukraine.
  • The PBOC set its central USD/CNY mid-point just 10 pips above sell-side estimate, following a nearly 60-pip miss in yesterday's fixing.
  • U.S. ADP employment change, German unemployment & flash EZ CPI take focus from here alongside a monetary policy decision from the BoC and a slew of speeches from various central bankers.

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