JPY gains for a third session as equities.....>

FOREX: JPY gains for a third session as equities show below 50-dma

-Safe haven FX is on the front foot early Thursday, with JPY and CHF top of the

pile as global equity markets retreat further. E-mini S&P futures showed below

the 50-dma in the European morning for the first time since January as the odds

of a US-China trade deal being struck in the near-term appear more and more

remote as each day goes by. Sour risk sentiment has worked against

commodity-tied FX and GBP, with GBP/USD hitting two week lows.

-This sentiment has been reflected further in the rise in USD/CNY, with spot

breaking above the Cny6.85 mark for the first time since the opening week of the

year. Risk reversals markets have followed suit, with USD/CNY 1m contract adding

to yesterday's firm gains and turning the most bearish on the CNY since February

last year.

-Attention turns to US PPI and March trade balance data, with Canadian trade

data due also. Fed's Powell is due to speak, but only delivers brief opening

remarks with no Q&A. Fed's Bostic speaking on the economic outlook may elicit

more interest.