EUR bounces as market writes down odds of.....>

FOREX: EUR bounces as market writes down odds of Draghi Bazooka

-EUR/USD bounced from the day's lows of $1.1031 on MNI sources reports

suggesting the ECB could delay a launch to QE and tie such a program to incoming

data. While EUR failed to cement a rally to the top of the G10 pile, the pair

was spared further losses as the market marked down the likelihood of a no holds

barred Bazooka from Draghi on Thursday.

-Elsewhere, risk appetite got a decent boost as the South China Morning Post

wrote that China could be ready to sweeten any trade deal by buying American

agricultural goods. The report saw USD/JPY and commodity-tied FX rally, helping

AUD and CAD back toward the top of the table. Shortly following this, however,

the sacking of John Bolton, Trump's National Security Adviser, reversed gains in

crude and pressuring petro-tied FX.

-Scandi FX remained weak following Norway and Sweden posting disappointing

inflation data, throwing caution on projections of rate rises by year-end.

-US PPI data is the highlight Wednesday, with the speaker slate once again slim

as the Fed remain in their pre-meeting blackout period.