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G10 FX swallows tariff burden, all eyes on....>

FOREX
FOREX: G10 FX swallows tariff burden, all eyes on Trump
-In a case of buy the rumour, sell the fact, JPY pulled back slightly on the
confirmation of a higher tariff burden on Chinese imports headed to the US.
USD/JPY bounced further from yesterday's lows printed at Y109.47 and briefly
managed to show above the Y110 mark in Asia-Pacific hours. Regional equities
rallied, with the Shanghai Comp finishing higher by close to 2%, with the marked
turnaround later pinned on China's state-backed funds scooping up domestic
equities. Nonetheless, Asia-Pac indices failed to erase the entirety of the
sharp losses suffered since Monday.
-The sentiment filtered through into the European morning, with continental
markets edging higher and the JPY remaining weak. In sympathy, AUD and CAD have
improved slightly but stubbornly high short-end vol measures indicate the
market's not confident of a protracted recovery in risk.
-Attention turns to any comments from Trump (POTUS meets with the Chinese
delegation again today in Washington) and US CPI for April. Canadian jobs data
is also due as well as speeches from Fed's Brainard, Bostic and Williams.

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