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Europe managed to temper the effects of US....>

FOREX
FOREX: Europe managed to temper the effects of US Trump's weekend comments which
were seen fading hopes for a near-term US/China trade deal. Risk in Asia also
reacted to reports that a protestor had been shot in HK.
- JPY, which is viewed as the barometer of risk, saw inflows, which took USD/JPY
through its 200-dma(Y109.03) to a low of Y108.92. Recovery efforts in early
Europe have so far failed to move rate back above Y109.03.
- EUR/USD retested Friday's low of $1.1017 in early Asia and edged to $1.1034
through the European morning. Little reaction seen to the weekend Spanish
election which again failed to produce a conclusive result.
- Cable opened the week with an underlying firm tone as weekend polls suggested
the Conservatives remaining in the lead, seemingly disregarding Moody's changing
its UK outlook to negative from stable late Friday. Release of UK Q3 GDP didn't
produce any major reaction, QQ growth of 0.3% missed 0.4% expected.
- The U.S. observes a partial mkt closure today (cash Tsys closed, stocks open).
- Fed's Rosengren, as well as ECB's Mersch will speak.

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