Markets calmer Tuesday, denting JPY -JPY......>

FOREX: Markets calmer Tuesday, denting JPY

-JPY trades on the backfoot ahead of the NY crossover with somewhat more stable

equity markets helping underpin sentiment. Asia-Pacific equities edged higher

overnight, with the Nikkei 225 adding over 2% while Hong Kong equities just held

their head above water. European markets are more mixed, with UK and France

higher (alongside US index futures), while Eurostoxx, Germany and the periphery

are in the red. USD/JPY's gains were somewhat gradual, but accelerated on the

move through the overnight high of Y110.24, topping out at Y110.41 and seeing

the best volumes of the day go through: Over 5,500 contracts changer hands

within 60 seconds - equivalent to over $600mln.

-The slightly firmer footing of risk sentiment has helped AUD and CAD somewhat

this morning, but moves remain muted with limited newsflow to nudge prices

convincingly in either direction. GBP continues to underperform with yesterday's

developments in parliament piling on more uncertainty to UK markets.

-US housing starts, building permits and consumer confidence are the highlights,

with Fed's Evans & Daly, BoE's Broadbent and ECB's Makuch also due.