JPY strength was the overriding theme from....>

FOREX: JPY strength was the overriding theme from the overnight session as

EURJPY carved out another fresh YtD low.

- A bout of risk off flow was apparent as US Tsy yields moved to lows & the PBoC

fixed the USDCNY cross over 6.4000, with little news flow apparent at the time.

This saw USDJPY briefly cross below 109.00, while the AUDUSD & NZDUSD came under

pressure, although the Antipodeans now trade off of worst levels.

- Price action was fairly limited elsewhere with Yonhap running a story noting

that a North Korean senior official has headed for Washington for possible

working-level talks, which may have limited the risk off flows later in the

session.

- Fed non-voter Bullard will speak in Asia-Pacific hours, with a slew of ECB

speakers including Mersch, Lautenschlaeger, Villeroy, Coeure, Visco & Nowotny

due later in the day. Elsewhere focus will be on Italy, as PM-designate

Cottarelli is scheduled to attempt to form a government (which is likely to be

voted down by the populist parties), with one eye also on the Spanish political

developments.