JPY reinforced its leading position in the....>

FOREX: JPY reinforced its leading position in the G10 currency table, as risk

appetite soured upon the release of a BBG sources piece claiming that Sino-U.S.

trade talks reached an impasse over IP theft issues. The Nikkei 225 started on

the front foot, but erased most of initial gains after the BBG piece hit the

wires, and last trades ~0.3% higher, while U.S. equity futures are in the red. 

- Risk-off flows weighed on the Antipodeans, AUD/JPY touched lows of Y78.29. 

- GBP is relatively weak, although GBP pairs operate in fairly tight ranges as

markets absorb weekend news flow re: Brexit, which suggests cross-party talks on

PM May's deal were inconclusive, and May will now try to renegotiate the "Irish

backstop" clause. The PM is expected to present her plan B to lawmakers later

today, but many doubt it will involve notable deviations from the original plan.

- Focus this week falls on MonPol decisions from the BoJ (Weds), as well as the

ECB & Norges Bank (Thurs), while key econ releases include Chinese GDP due later

today, UK labour mkt data & German ZEW survey, NZ CPI Wednesday, flash global

m'fing & services PMIs & Aussie labour mkt report due Thurs, as well as German

IFO due Fri.