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

FOREX
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.

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