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USD Up On China Lockdown Of Chengdu

FOREX

The DXY index has pushed back above 109.00 (last around 109.10). The move coincided with China announcing a fresh Covid lockdown for the city of Chengdu (population over 16 million), which sent a wave of risk-off flows through the market. AUD/USD tested below 0.6800, but is now back above this level. EUR/USD is is edging back towards parity (last 1.0015/20), while USD/JPY has stabilsied somewhat around 139.50. Yen crosses have seen some selling interest, as US equity futures weaken, bask close to 3925 for Eminis.

  • USD/CNH is higher but remains below 6.9200 for now, outperforming this period of USD strength. Spot USD/KRW touched 1355, but is now back just below 1354.

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