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USD, JPY Gain as Equities Tumble on Lockdown Fears

FOREX

Risk-off has been the theme of Wednesday so far, with looming risks of stricter lockdown measures across France and Germany weighing on sentiment across equities, currencies and, increasingly, commodities.


  • Equities in continental Europe are lower by 1.6-3.2%, dragging US futures lower in tandem, which has helped support the greenback and JPY headed into the NY crossover.
  • EUR/USD is under pressure, extending the recent sell-off from 1.1881, the Oct21 high and turning focus to the key near-term trendline support drawn from Sep28 low that today intersects at 1.1740. This level will likely stay in focus headed into tomorrow's ECB rate decision.
  • A further decline in WTI and Brent crude oil prices is weighing on commodity-tied currencies, with NOK falling against all others in G10.
  • Earnings season continues after Microsoft's poorly received report yesterday (their shares settled lower by 1.7%). Boeing, General Electric, UPS, Visa & Mastercard due ahead of today's open.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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