JPY consolidates Asia/Europe gains -..........>

FOREX: JPY consolidates Asia/Europe gains

- Escalation of the US-China trade war that saw President Trump order an

additional $200bn in tariffs, triggered renewed risk off through Asia/Europe.

The US session remained quiet and largely consolidated early moves.

- No surprises that JPY was the standout performer across the board. USDJPY

moved through the 200-dma (Y110.25) to Y109.55. CADJPY continued its downtrend

to Y82.56, EUR, GBP & AUD were also particularly hit hard.

- EURUSD continued under pressure but fell short of the May29 low at $1.1510.

- The formation of a death cross in GBPUSD pressured to lows of $1.3151, EURGBP

flirts with the 100-dma (Gbp0.8789) and will be monitored at the close.

- Commodity based currencies suffered again today as the SHCOMP hit multi-year

lows. USDCAD printed C$1.3292, AUDUSD moved through $0.7400 for the first time

since May 2017 and is generating outright bearish sentiment according to the MNI

FX Technical Signal monitor. The weak dairy auction also kept a lid on the kiwi.

- Hungary as expected left rates unchanged but did indicate an end to its loose

policy, a quick spike to Huf325.26 quickly retraced to Huf321.63.