Havens on the front foot as China turns the...>

FOREX: Havens on the front foot as China turns the tables against a deal

-It was China's turn to step up the rhetoric in the China-US trade spat Friday,

with Chinese authorities signalling that the government have little appetite for

further trade negotiations while the US continue to threaten to up tariffs

levied on goods headed to the US. The shot across the bow has sent risk appetite

lower, with JPY and CHF gaining at the expense of the CNY (onshore CNY closed

the session at the lowest level since last year) and commodity-tied FX, with AUD

and CAD leading the losers among G10.

-Reports from Reuters suggesting the PBoC wouldn't tolerate a move above 7.00

haven't deterred markets from selling Chinese FX further, with USD/CNH

approaching 6.95 in early NY.

-GBP remains under pressure, with GBP/USD touching a fresh cycle low and eyeing

the Feb14 low at $1.2773 to trigger another leg lower.

-The data calendar's relatively quiet, keeping focus on sentiment swings and any

developments between the US and China. Prelim May Uni. of Michigan data crosses

and speeches are scheduled from Fed's Williams and Clarida.