Early risk faded through Europe. - Early......>

FOREX: Early risk faded through Europe.

- Early risk was quickly faded which has seen JPY sit top of the pile ahead of

the NY crossover. EURJPY eased toward 122.20 and brings the May 15 low at 122.08

& 122.00 level back into view. GBPJPY breached the key Y138.50 level to print

its lowest levels since mid-Jan. The 61.8% fibo of the 2019 range provides next

support at Y138.26.

- USDJPY touched pullback lows of Y109.21 and was further pressured from UST

yields which saw the 10y fall to 2.2728%, its lowest level since mid-Oct 2017.

- Uncertainty surrounding Brexit & the political outlook put sterling on the

defensive. Choppy trade saw a quick roundtrip in GBPUSD from 1.2702 to $1.2670,

before GBPJPY led sales pressured toward 1.2650. EURGBP rallied to Gbp0.8840

with topside focus on a break of Friday's high & the 50% fibo of

Gbp0.9415-0.8305 at Gbp0.8850/60.

- The offshore Yuan lost further ground to Cnh6.9312, despite headlines that the

PBoC is to increase counter-cyclical adjustments.

- Hungarian rate decision today at 1200GMT, no change widely expected.