Europe plays catch-up, sending risk into......>

FOREX: Europe plays catch-up, sending risk into reverse

- Continental stock markets sank Monday, catching up with the negative

performance posted in both the US and UK late last week. As such, European

equities shed 3-4% and helped keep a nascent bidtone across both JPY and USD.

- Generally, it was a quiet session, with little data or market-moving headlines

to trigger much activity in either direction. The sharp drop in the USD at April

month-end continues to fade, keeping EUR/USD and GBP/USD under considerable

pressure to begin the week. EUR, GBP were the poorest performers in G10, with

Monday's PMI data highlighting what is likely only the beginning of COVID

inspired economic weakness in Europe and the UK government's commitment to not

extending the transition period weighing.

- The German constitutional court judgement on the ECB's asset purchase plan is

due Tuesday, but markets expect a begrudging thumbs up from the German court.

The RBA rate decision is also due, with the bank seen keeping rates unchanged.

Canadian and US trade balance figures are due, as well as final US & UK services

PMI data.