JPY led the way into the U.S. afternoon,......>

FOREX: JPY led the way into the U.S. afternoon, aided by the broader risk off

flows that began in Asia-Pacific trade, before the rebound in U.S. equities

pushed the major JPY crosses away from session lows. USD/JPY registered a low of

Y111.96, failing to break up trendline support at Y111.95.

- DXY was relatively directionless. GBP rose modestly thanks to positive Brexit

headlines (RTE reported the EU may offer a UK-wide customs arrangement), before

GBP/USD topped out at $1.3044, fading back below $1.3000.

- EUR/USD stuck to a tight range, as the EU rebuked Italy's budget proposal, as

expected. Initial replies from Italian figureheads pointed to little room for

concession.

- AUD remained weak and traded within 15 pips of the year's lows against the

USD, before the recovery in equities allowed AUD/USD to bounce. Immediate focus

for the pair will fall on Chinese equity market performance.

- Rate decisions from the Riksbank and Bank of Canada are due Wednesday as well

as prelim EZ & U.S. PMI data. The Fed will also release its Beige Book. Fedspeak

will come in the form of Bullard, George, Bostic & Mester.