JPY, USD surge as dour data knocks............>

FOREX: JPY, USD surge as dour data knocks sentiment

-The European session started poorly for risk sentiment as a multi-year low in

German manufacturing PMI pulled the rug from under the EUR, which took sentiment

(along with a number of other currencies) with it. This effect crept through to

Scandi FX (and to a lesser extend, the CHF) with their policy outlooks weakened

by the darkening economic clouds over the Eurozone. EUR/USD bears made light

work of any support ahead of the $1.1300 handle, with spillover selling in

EUR/JPY pressing the cross to the lowest levels since mid-January.

-EMFX fell sharply alongside equity markets on both sides of the pond Friday,

with TRY in particular coming under pressure and forcing the central bank to

throw in the towel on currency swap operations. ZAR, HUF and RUB among others

followed suit.

-Focus turns to German IFO and CPIs, the RBNZ rate decision, US GDP figures and

MNI Chicago PMI. A plethora of central bank speak is due, including what appears

to be the entire ECB executive board due Wednesday. Brexit deliberations

continue, with the EU exit date almost certainly pushed back from March 29th.