Fresh risk-off flows emerged as Chinese.......>

FOREX: Fresh risk-off flows emerged as Chinese state media circulated reports

stating that Beijing may not be interested in resuming trade talks with the U.S.

now. The yen jumped to the top of the G10 pile as a result, even as the Nikkei

225 remained in the green, while high-beta FX took a hit.

- The reports prompted USD/CNH to break above its Dec 2018 high, which capped

gains earlier in the session, and print a fresh YTD peak.

- NZD shrugged off the release of the latest NZ data. BusinessNZ m'fing PMI

edged higher, while PPI moved into negative territory.

- USD/TRY spiked ~400 pips on the back of comments from the White House noting

that "the U.S. is terminating Turkey's preferential trade treatment under GSP

effective on Friday." The rate promptly drifted off of highs and consolidated

around TRY6.0700, as the U.S. announced a reduction of tariffs on Turkish steel

imports to 25% from 50%.

- Focus today turns to EZ CPI & construction output, as well as U.S. leading

index & U. of Mich. sentiment. Fed's Williams & Clarida will speak. Also worth

noting that Australian federal elections take place this Saturday.