G10 FX space has switched into a risk-on......>

FOREX: G10 FX space has switched into a risk-on mode, even as it is hard to

point out any evident catalysts. Perhaps the lack of a material escalation in

Sino-U.S. tensions improved sentiment, with news flow surrounding the matter

limited to mutual sabre-rattling/potential actions. AUD led commodity-tied FX

higher, but AUD/USD failed to challenge Friday's best levels. JPY traded on the

back foot, with flash Japanese Q1 GDP less bad than expected.

- GBP faced selling pressure after BoE Chief Economist Andy Haldane told the

Telegraph that the central bank is reviewing unconventional monetary policy

options, including negative interest rates and boosting the QE programme. In

combination with continued Brexit worry, Haldane's comments generated selling

pressure on sterling. Cable has trimmed losses owing to the greenback's retreat.

- USD/Asia traded on a softer footing, with beats in domestic economic data

propping up THB & SGD. Thailand's Q1 GDP shrank less than forecast, while

Singapore's non-oil exports unexp. swelled in Apr, driven by pharmaceuticals.

- Today's data docket is very thin, while central bank speaker slate features

Fed's Bostic, ECB's de Cos & BoE's Tenreyro. Canada observes a public holiday.