JPY creeps closer to YTD highs as investors...>

FOREX: JPY creeps closer to YTD highs as investors eschew risk ahead of the

weekend

-European FX followed Asia in relatively risk-off trade with USD/JPY coming

within 40 pips of YTD (and 18 month) lows. Newsflow and datapoints have been

relatively light, with focus remaining on the political machinations of the

White House as rumours spread that Trump could axe his National Security Advisor

McMaster (although this was later denied).

-JPY gains have come at the cost of commodity-linked currencies, with AUD, NZD

and CAD dropping, while GBP and EUR have generally ebbed higher.

-Heavy supply in EUR/JPY dictated play early doors, pressing the rate down to

Y130.13 before recovering.

-Eyes now turn to the raft of US data, with housing starts/building permits,

industrial production and the Uni. of Michigan survey.