Market tension eases, but risk sentiment......>

FOREX: Market tension eases, but risk sentiment yet to recover

-Following the sharply lower open in global equity markets, risk recovered

slightly following the Wall Street opening bell, with tension soothed by reports

in China's Global Times that the Chinese delegation team will return to US-China

trade negotiations as previously scheduled - following rumours that the trade

timetable could be delayed. This allowed the likes of EUR/JPY and AUD/USD to

recover slightly but are yet to close the opening gap.

-EMFX was hurt by the market fallout, with ZAR and TRY firmly underperforming.

USD/TRY broke above the 6.0000 handle for the first time since October.

-Following firm outperformance Friday, GBP pulled back against all others Monday

as markets took profit on the sharp gains booked last week. GBP/USD showed back

below the $1.31 mark, but Friday's lows of $1.2990 weren't under threat. A UK

Bank Holiday kept London traders from their desks, so volumes were light and

liquidity thin.

-Focus Tuesday turns to the Reserve Bank of Australia rate decision, BoJ minutes

and Canada's Ivey PMI.