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Covid Strikes Back
Concerns that a new mutation of the Covid virus has shaken the capital markets. Equities are off hard, and bonds have rallied. In the foreign exchange market, the Japanese yen and Swiss franc have rallied. While there may be a safe haven bid, there also appears to be an unwinding of positions that require the buying back of the funding currencies, which is also lifting the euro. The currencies levered from growth, the dollar-bloc and Scandis are weaker. Oil has been knocked back by around 6.7%, with January WTI trading near $73. Led by 2%+ losses in Japan, Hong Kong, and India, and 1%+ losses in South Korea, and ... (full story)