Two-way risk leaves markets agitated -........>

FOREX: Two-way risk leaves markets agitated

- Equity and currency markets fought conflicting signals Tuesday, with rising

geopolitical tensions across Asia and an accelerating COVID count across Texas,

Florida, Arizona and Beijing running against surprisingly firm economic data and

reassuring news on the progress of COVID treatments.

- A firm beat for US retail sales helped drive risk in early US hours, which

beat even the most optimistic of economist expectations. News that a UK trial

for COVID treatment had proved successful further added to the risk-on theme.

This was optimism was tapered however as Florida and Arizona case counts surged.

The moves favoured havens, with USD and JPY among the strongest while AUD, NZD

and SEK were left wanting. Major pairs stuck to their recent ranges by and

large, leaving the equity market to continue to lead wider asset prices for now.

- UK, Canadian and Eurozone inflation data, US building permits and housing

starts and the Brazilian central bank rate decision are the highlights

Wednesday. Fed's Powell appears for a second time, this time in front of the

House Fin Services Panel as well as Fed's Mester.