Markets pause ahead of long weekend, UK GDP...>

FOREX: Markets pause ahead of long weekend, UK GDP inline

- JPY softened o/n following comments out of N Korea, which suggested the state

is more than willing to meet with the US despite Trump calling off the summit.

USDJPY squeezed to Y109.74, before profit take sales eased. Rate continued to

drift lower through Europe, based at Y109.33 and held in narrow range trade.

- The broader USD theme pressured both EUR & GBP into Europe. German IFO was

largely as expected and failed to react. UK GDP growth also matched analysts

forecasts of +0.1% q/q. ONS commented they see a continuation pattern of slowing

growth, GBPUSD touched react lows of $1.3334, but was quick to pare losses.

- The stronger USD tone amid weaker oil prices initially weighed on CAD & AUD,

before position adjustment later settled mid-range.

- TRY remained choppy and saw decent gains against the USD after the central

bank said it will allow exporters to repay dollar loans in the domestic currency

- SEK is the big winner of the day after the Swedish debt office said it will

take position for a stronger Krona against the Euro. EUR/SEK touched lows of

Sek10.1654. US Durable Goods (1230GMT) & Michigan Sentiment (1400GMT) due up.