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Germany SPD Party voted to proceed with.......>

FOREX
MNI (London)
FOREX: Germany SPD Party voted to proceed with Grand Coalition negotiations with
the ruling CDU/CSU party over the weekend but early positive reaction to this
countered by early Italian election exit polls which showed the populist parties
had made good progress, though also pointed to a hung parliament. Trump also
upped the ante against the EU over the weekend threatening the bloc with auto
sector sanctions if it decides to hit back against last week's metal based
tariffs.
Mild risk-off tone on the back of Trump benefited the Jpy in early Europe, which
along with Italy election forecasts, placed Eur/Jpy under strong pressure as it
broke to fresh 2018 lows of Y129.35. This initially pulled Eur/Usd down to
$1.2269, but rate was able to recover as Usd/Jpy was pressed down to Y105.35.
Usd/Jpy has a large option expiry at Y105.50 for today's NY cut which has
provided an attractive influence. Late morning and Italy election forecast
looked to be brushed aside as leading populist parties seen with little chance
of agreeing a coalition together. Eur/Usd edged backa bove $1.2300 while Eur/Jpy
clawed its way back above Y130.00, in a move seen influenced by the Dax. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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