Equities surge on tariff delay, with EM FX....>

FOREX: Equities surge on tariff delay, with EM FX on top

-While Trump's decision to delay the planned hike in tariff rates on Chinese

imports is no major surprise, currencies with a high sensitivity to global trade

(AUD, NZD, KRW, ZAR and CNH) are all well bid this morning, pressing haven FX

lower in tandem. USD/CNH touched the lowest levels since July last year on the

news, with the 50-dma now on the cusp of forming a death cross with the 200-dma.

-Both GBP and EUR trade more or less sideways, with markets greeting news that

PM May has tabled a 'meaningful vote' on Brexit for March 12th with little more

than a shrug. The further lack of reaction to reports suggesting Theresa May and

her counterpart Angela Merkel discussed the prospect of a delay to Brexit are

the latest signs of headline fatigue and the market further pricing in a lack of

disruption on March 29th.

-JPY is the worst performer in G10, hurt by rallying equities, with Chinese

markets up as much as 6% and mainland Europe higher by 0.2-0.5%.

-The data calendar is relatively quiet Monday, with just Chicago Fed National

Activity Index on the docket. Fed's Clarida also speaks.