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Buoyant risk appetite set the tone of.........>

FOREX
FOREX: Buoyant risk appetite set the tone of today's data-heavy Asia-Pacific
session, supporting AUD, NZD & CNH, as optimism re: Sino-U.S. trade talks
remained intact, while Chinese PMI data topped exp. All three official gauges
released over the weekend advanced, with m'fing PMI moving back into positive
territory. Caixin m'fing PMI printed at 50.8 vs. exp. of 50.0 & the prior 49.9.
- Safe haven FX struggled under pressure from the aforementioned risk-supportive
factors, with JPY leading losses among the G10 currencies. The Nikkei 225
rallied ~2.2%, while the headline Tankan metrics were relatively soft.
- GBP was also relatively weak, amidst uncertainty re: Brexit & political
stability in the UK. The Commons is set to proceed with another round of
indicative Brexit votes today, amidst speculation re: a snap general election.
- USD/TRY advanced ~450 pips overnight on the back of reports suggesting that
Pres Erdogan's party won municipal elections, but lost some key cities, which
triggered concerns that a fresh wave of populist issues might follow.
- Focus today turns to global m'fing PMI data, U.S. retail sales, EZ CPI and
unemployment, as well as comments from ECB's de Guindos and BoC Gov Poloz.

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