Equities improve further, putting havens......>

FOREX: Equities improve further, putting havens under pressure

- Another session in the green for European equity markets has kept a lid on

havens for a third session, keeping JPY at the bottom of the G10 pile. This has

resulted in new recovery highs at 108.85 for USD/JPY, and new multi-month highs

in EUR/JPY above the 122 handle.

- Oil-tied FX has improved further, with WTI and Brent crude futures higher

ahead of an anticipated extension to OPEC+ output cuts. WTI traded above $38 and

Brent traded above $40 for the first time since early March. This has helped NOK

trade on the front foot, prompting a new two-month high in NOK/SEK.

- The greenback has suffered further, pressuring the USD index to new

multi-month lows in the Asia-Pac session. This continues to flatter major pairs,

prompting the likes of EUR/USD, GBP/USD and AUD/USD to hit cycle highs.

- ADP employment change data is expected to show a shedding of a further 9mln

jobs across May, with ISM non-manufacturing PMI numbers to follow. The Bank of

Canada rate decision is due, with the BoC seen keeping policy rates unchanged at

0.25%.