Market shy further from risk, boosting JPY....>

FOREX: Market shy further from risk, boosting JPY

-JPY extends its winning streak, sitting higher against all other G10 FX for the

second consecutive session. The USD also trades modestly higher alongside

broader the broader risk-off theme that's carried through from yesterday's

relatively quiet session. New developments in Italy have been few and far

between, allowing Italian assets to stabilise somewhat, although the yield curve

continues to inch higher.

-NOK shrugged off lower than expected GDP growth as Norges Bank's Olsen

re-asserted that the central bank are ready to normalise monetary policy.

EUR/NOK trades comfortably below Nok9.50 in response.

-GBP is the poorest performer in G10, stymying the recent GBP/USD recovery and

pressing the pair well back below $1.31. Markets continue to trim their hopes of

an easy resolution between Westminster and Brussels.

-The data calendar is typically quiet for this time of the month, with focus

remaining on the speaker calendar. Fed's Kaplan and Harker, BoE's Broadbent and

ECB's Villeroy are all due to speak.