A cautious mood prevailed as investors........>

FOREX: A cautious mood prevailed as investors brace for the resumption of

U.S.-China trade talks. U.S. TR Lighthizer & Tsy Sec Mnuchin are heading to

Shanghai to meet with the Chinese delegation led by VP Liu on Tuesday. 

- Risk aversion put a bid into safe haven FX. JPY emerged as the best G10

performer, further bolstered by idiosyncratic factors. USD/JPY was offered into

the Tokyo fix amid talk of Japan's mamooth Government Pension Investment Fund

starting to hedge its overseas investments. A slide in the Nikkei 225 and

positioning ahead of this week's BoJ & FOMC meetings also aided the yen.

Elsewhere, no reaction was noted to better than exp. Japanese retail sales data.

- The Antipodeans extended their recent losing streak, weighed on by the broader

risk-off feel and softer bond yields at home.

- Sterling faced headwinds from off as numerous press reports suggest that PM

Johnson's gov't has severely intensified preparations for a no-deal Brexit.

Renewed cable sell-off was noted as the rate breached Friday's multi-year low.

- It is a very quiet start to the week, with no central bank speakers expected

today. Dallas Fed manufacturing survey is on the data calendar.