A bounce-back observed in the safe-haven instruments late on Monday, which was carried through into the session on Tuesday.
There isn’t one particular catalyst to attribute to these moves observed as noted above, however, a few points to consider, with some focus on comments from the World Health Organization.
They warned that the Covid-19 pandemic is getting worse and the crisis is 'far from over', after detailing More than 136,000 cases of the coronavirus were confirmed Sunday-Monday — which is the highest daily toll since the outbreak began in December.
In terms of the geographics, it was reported that just under half of the cases (45%) were diagnosed in Brazil and the US, with the Americas now at the epicentre of the crisis.
WHO chief Dr Tedros Adhanom Ghebreyesus said: 'Although the situation in Europe is improving, globally it is worsening.'
Other points to note:
Technical correction - Following all of the recent pumping of the riskier FX currencies over the past few weeks.
FOMC positioning - It could also be some portfolio positioning ahead of the big risk event on Wednesday, FOMC rate decision. As covered in our prior blog.
Gold prices remain supported to the upside, JPY has staged a strong rebound over the last two sessions, with USD picking up some momentum, however somewhat capped ahead of the FOMC on Wednesday.
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