Equities hit a new high as USD/JPY nears......>

FOREX: Equities hit a new high as USD/JPY nears breakout level

- Global equity markets were buoyed by a fresh wave of risk appetite across the

Monday session, with the S&P500 touching another record level just ahead of the

beginning of earnings season. This was well reflected in currency markets as the

JPY slipped and AUD, NZD gained. USD/JPY has now rallied over 2% over the past

four sessions and is on track to break above the Y110 mark for the first time

since May last year. Markets gain in anticipation of a major soothing of trade

tensions at this Wednesday's phase one US/China trade deal signing.

- GBP went from weak to weaker Monday, coming under pressure from MPC member

Vlieghe's dovish interview in the FT this weekend and further sellers came out

of the woodwork on poor GDP, manufacturing & industrial production data. GBP/USD

fell through 50-dma support and is now narrowing in on the mid-December lows of

$1.2905.

- US inflation data is the highlight of the Tuesday session, with CPI Y/Y seen

inching higher. Fed members Williams & George are due to speak as well as ECB's

Mersch, Villeroy and de Cos.