European FX followed Asia in relatively.......>

FOREX: European FX followed Asia in relatively risk-off trade as USD/JPY came

within 35 pips of YTD (and 18 month) lows. Newsflow was relatively light, as

focus remained on the the White House after rumours spread that Trump could axe

his National Security Advisor McMaster (although this was later denied).

- The risk off theme spilled over into NY as commodity based currency pairs

remained on the defensive. Having broken the major descending trend-line this

week, Aud/Usd moved through the 100-dma to 2018 lows of $0.7711. Kiwi tracked

the move to NZ$0.7208 with next support at NZ$0.7184 (200-dma). Usd/Cad

continued to print fresh 8-month highs of C$1.3099.

- Market talk of an advisory firm report suggesting the Fed will prepare up to 4

rate hikes this year (although nothing new) triggered a bout of USD demand.

Eur/Usd slipped back under $1.2300, the break triggered fresh supply from

momentum type accounts to $1.2260. Gbp/Usd touched pullback lows of $1.3890

before staging a recovery to the $1.3935/40 area. Usd/Jpy managed to pare some

morning gains and reclaimed the Y106 handle.

- Rate meetings from the Fed/BoE next week, Brexit talks are set to to resume.