Bumper session for risk as equities prove.....>

FOREX: Bumper session for risk as equities prove resilient

- JPY dropped sharply Tuesday, falling against all others in G10 to hit

multi-month highs against the USD, AUD, EUR and others. The moves lower in JPY

came alongside persistent strength in equities, with the S&P500 hitting new

recovery highs in early trade. Fundamental news was thin on the ground, but the

outperformance of cyclicals over defensives helped contribute to the risk-on

mood. USD/JPY took out the 200-dma to expand the long-lasting 107.50-108.00

range which opens 109.38, the early April high, as the first upside target.

- Oil-tied FX bounced well, with CAD, NOK and RUB all firmer against the

greenback as WTI and Brent rallied. Reports continue to suggest that OPEC+ could

agree on an extension to output curbs as soon as this Thursday - sentiment which

helped boost WTI and Brent crude futures to new multi-month highs.

- Focus Wednesday turns to Australian GDP, global services PMI data, ADP

employment change and ISM non-manufacturing PMI. RBA's Bullock speaks and the

Bank of Canada rate decision is due.