G10 FX activity picked up in the second.......>

FOREX: G10 FX activity picked up in the second half of the Asia-Pac session

after a very ltd start. The catalyst was a SCMP source piece which noted that

"the U.S. and China have tentatively agreed to another truce in their trade war

in order to resume talks aimed at resolving the dispute." As mentioned

elsewhere, while the SCMP piece revealed little new (very similar to a BBG

sources piece earlier this week), the market reaction reiterates the relatively

pessimistic expectations heading into the G20 summit. Safe haven CHF & JPY

underperformed, with USD/JPY breaking above Y108.00, after a source highlighted

non-Japanese demand through Y107.95, with G!) FX ranges relatively restrained

elsewhere. AUD/USD has been capped by the psychological $0.7000 level, while NZD

showed little in the way of lasting reaction to a softer NZ ANZ business

confidence survey.

- The yuan befitted from the SCMP source piece and a modest uptick in Chinese

industrial profit data, but USD/CNH & USD/CNY ranges were tight.

- Focus today moves to state & national German CPI data, the third U.S. Q1 GDP

reading, various EZ confidence metrics and an address from ECB's Nowotny.