China's President Xi calms markets with.......>

FOREX: China's President Xi calms markets with balanced speech

- Asia witnessed improved sentiment overnight after a balanced speech from

Chinese President Xi that promised to significantly lower import tariffs for

autos and open the economy. With risk back on the table, Jpy crosses and

commodity based currency pairs were the biggest winners.

- The risk-on theme spilled over into Europe with added support from firmer

equities. Eur/Usd squeezed to $1.2335, before meeting reported supply.

- GBP continued buoyant after BOE McCafferty remarks to Reuters that the BOE

shouldn't dally over raising rates modestly going forward. Later BOE Haldane

remarks that loosening hasn't worsened inequality saw Gbp/Usd touch $1.4169,

Eur/Gbp traded under Gbp0.87 with this level once again eyed today at the close.

- The Usd/Jpy retracement off overnight highs (Y107.24) extended through Y107.00

to Y106.81 after Bbg headlines that US-China talks are said to have stalled over

high tech industry and US rejected China offer to cut trade deficit by $50bn.

- NZD & AUD remain the G10 outperformers against the USD (+0.51%/+0.35%),

largely fuelled by cross JPY gains overnight amid the improved risk appetite.