FOMC minutes all but confirm June rate hike...>

FOREX: FOMC minutes all but confirm June rate hike

- Risk aversion commenced during the Asia session Wednesday, the sale of TRY/JPY

by Japanese Retail was attributed to the move with market also reacting to the

Trump/Kim Jun12 meeting put into doubt.

- The risk averse theme spilled over into NY, before profit taking ahead of the

Fed minutes witnessed modest recoveries.

- FOMC minutes noted the next rate hike is appropriate, soon and modest

inflation overshoot could be helpful. USD witnessed very little react.

- Soft European PMI's pressured EURUSD, rate extended its corrective pullback in

NY to 6-month lows of $1.1676. GBPUSD also felt weight in the European morning

after weaker-than-expected UK headline CPI & Core. The risk-off tone touched NY

lows of $1.3306.

- JPY crosses remained strong across the board, GBPJPY dropped +300 pips on the

session, EURJPY down +200, with deep losses also for CAD, AUD & NZD.

- Turkish Central bank held an extraordinary rate meeting and raised its main

lending rate by 300bps to 16.5%. TRY gained 30 big figs vs the USD to Try4.5570.