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JPY on top as market sentiment remains........>

FOREX
FOREX: JPY on top as market sentiment remains fragile
-JPY is comfortably the strongest performer in G10 this morning, helped higher
by a poor showing from European equities. Core European indices trade lower by
between 0.3-0.7%, despite the positive close on Friday. Similarly, US equity
futures ebbed lower after bouncing back Friday, indicative of a negative Wall St
open to start the week.
-The USD index sits just above last week's lows and continues to look weak on a
the break below Y112 in USD/JPY. GBP and SEK are the only currencies
underperforming the greenback so far today. Further disharmony among the UK
cabinet is muddying the Brexit waters for what seems like the hundredth time,
prompting GBP/USD to gap lower and (briefly) trade below 1.31 for the first time
since Tuesday.
-SEK also dropped on political risks as the Swedish parliament failed, again, to
form a new government. The gridlock erased the bulk of Friday's EUR/SEK losses.
-The data calendar is sparse but ECB's de Guindos is due to speak and US
earnings season continues with Bank of America and Charles Schwab.

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