A Saturday drone strike on major Saudi........>

FOREX: A Saturday drone strike on major Saudi Aramco facilities provided an

early shock to the FX space, amid a resulting rally in oil prices (Brent jumped

as much as ~19% in its largest intraday swing since 1991). The strike removed

approximately half of Saudi Arabia's crude output, which amounts to ~5% of

global production. President Trump said that he has authorised the release of

strategic U.S. petroleum reserves if needed to secure market stability.

- Early trade has seen increased demand for the oil-tied CAD and NOK, with RUB

also receiving a boost. USD/CAD sank back under the 100-DMA at C$1.3275 after

clearing the level on Friday. With NOK topping the G10 pile, USD/NOK is

threatening to break out of its recent range as it bottomed out just 14 pips

above the key Sep 9 low of NOK8.9129.

- A degree of risk aversion has crept in early doors, with JPY & CHF finding

themselves on the front foot. The yen's strength may be slightly capped by

firmer oil prices. The Antipodeans softened on the cautious mood before paring

the bulk of their initial moves. TRY faces selling pressure; elsewhere in EMFX

it's worth watching reactions in KRW & INR once they start trading.