A risk-off tide swept across the G10 FX.......>

FOREX: A risk-off tide swept across the G10 FX basket, although there was little

of note on the news wires, apart from North Korea's declaration that it will cut

all communication lines with the South and start treating Seoul as an enemy.

Against this backdrop, participants likely reassessed the recent improvement in

broader sentiment. Safe haven FX gained, with JPY topping the G10 pile. USD/JPY

probed the water below the Y108.00 mark, but struggled to consolidate there as

the greenback was also bid. Should BBDXY retain gains, it may snap its longest

losing streak in more than a decade. AUD was the worst G10 performer, with

AUD/USD falling past the $0.7000 mark.

- The Antipodeans faced additional pressure from a weaker than expected daily

PBoC fix. USD/CNH jumped in the initial post-fix reaction move and extended

gains, steadily moving away from its yesterday's low/100-DMA.

- KRW was the strongest currency in Asian EMFX following a lower open in spot

USD/KRW, even as worries re: inter-Korean tensions weighed on local equities.

- Today's docket features German trade balance, as well as final EZ GDP &

employment, while ECB's Rehn is set to speak.