JPY gains for second session as equities......>

FOREX: JPY gains for second session as equities retreat further

-Mainland European stock markets have fallen further Tuesday but are yet to

materially challenge the lower levels of last week. The moves have helped buoy

safe haven FX, with JPY on top of the G10 FX pile and CHF not far behind. The

moves followed reports that the US will proceed with the formal extradition of

Huawei's CFO from Canada - further complicating the upcoming trade talks between

the US and China. The risk-off sentiment has played against Antipodean FX, with

NZD and AUD underperforming from the off.

-GBP also trades well following jobs and wage data, which showed the

unemployment rate dropping to equal the lowest rate in decades, while real wage

growth stood at the best level for over two years. As a result, GBP/USD added to

gains above $1.29 and bulls now eye last week's highs at $1.3001.

-Germany's ZEW survey came in mixed, but had little lasting impact on the EUR.

-Attention turns to Canadian manufacturing and wholesale trade data, with US

existing home sales following shortly afterwards. The speakers slate is

completely clear.