JPY the strongest as Trump throws spanner.....>

FOREX: JPY the strongest as Trump throws spanner in works of China trade deal

-Comments late yesterday from President Trump, who stated that he is personally

holding up the US-China trade deal, worked against risk sentiment across the

Asia-Pac session and into the European morning. This resulted in a firmer JPY

and CHF, although the bulk of the price action holds well within recent ranges.

USD/JPY hit the lowest levels of the week at Y108.22 but the Friday low remains

in tact at Y107.88 for now.

-The slightly souring risk sentiment saw Asia-Pac equities slip, with political

tensions in Hong Kong also not helping, pressing the Hang Seng Index lower by

1.7% at the close. The HKD was supported by a shoot higher in interbank funding

costs, sending USD/HKD to the lowest levels of 2019. This sapped any strength

from AUD and NZD, but AUD/USD managed to bounce off Fib support at $0.6944. Soft

commodities markets also took the wind out of CAD and NOK as WTI crude futures

slipped a further 2.8% ahead of the COMEX open.

-Focus turns to US CPI data for May, with headline CPI expected to slip but core

inflation seen holding firm. ECB's Coeure is also scheduled to speak.