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Buoyant equities lift commodity-linked FX.....>

FOREX: Buoyant equities lift commodity-linked FX at the expense of the USD
-Both the USD and JPY performed poorly on Monday as markets retraced the
stronger greenback from the tail-end of last week. Despite pushing back on
expectations of a near-term NAFTA deal, a conciliatory tone from new WH adviser
Larry Kudlow has quashed fears of an immediate trade crackdown between the US
and China. Nonetheless, speeches from the PBoC governor will be eyed early
Wednesday for any comments on reports that China could devalue the CNY should
trade tariffs damage exports.
-Commodities performed well from the off, with energy and metals posting gains
and helping support the CAD, AUD, NOK and NZD. USD/CAD briefly broke below the
C$1.27 mark and now sits between the 50- and 100-dmas.
-GBP and EUR trade mixed with little newsflow on either side to nudge the
needle. Data picks up later in the week with UK production and French/German CPI
all due.
-US PPI figures are expected to slow in tomorrow's report ahead of the FOMC
minutes Wednesday.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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