It has been a fairly limited session on the...>

FOREX: It has been a fairly limited session on the headline front, with the

major USD pairs sitting within 10 pips of their respective settlement levels

last. The start of the session saw some modest risk on flows, as equities

operated on a firmer footing, allowing the NZD to outperform, while USD/JPY

briefly reclaimed Y112.00. That was until Chinese equities opened for business,

trading lower from the get-go, weighing on risk appetite in the process. USD/JPY

last deals unchanged at Y111.90. Bulls eye a move back above trendline support

(Y112.09), before they look to the 21-DMA (Y112.75). Bears need a clean break

and close below the 100-DMA (Y111.59).

- The Antipodeans trade a few pips higher against the USD, off early highs.

- GBP lacked momentum, with little in the way of fresh Brexit developments.

- The EUR was unresponsive to S&P affirming Italy at 'BBB'; outlook to negative

from stable on Friday, largely in line with broader market expectations. The

same can be said for the single currency re: the latest German regional

election, which dealt yet another blow to the ruling coalition.

- U.S. PCE & the UK budget headline the docket today.