Markets pause following risk-on Asia - Risk...>

FOREX: Markets pause following risk-on Asia

- Risk appetite initially spilled over into Europe amid firmer UST yields and

equities, JPY crosses benefited lending support to the majors, before fading.

- EURJPY extended to Y128.40, the move took EURUSD above $1.1700 to highs of

$1.1718 but was unable to consolidate gains.

- GBP touched highs of $1.3377 before stalling around descending channel

resistance. Late EURGBP demand pared further gains to hold $1.3360/65. Despite

this technical signals are starting to show a more balanced outlook for GBP, the

pair will need to clear $1.34 for the next leg higher.

- AUD outperformed and was top of the G10 pile following the release of strong

Retail Sales data overnight. AUDUSD printed $0.7643, AUDJPY briefly traded above

the 100-dma and will be monitored on a closing basis. NZD & CAD also fared well,

NZDUSD comfortably holds above $0.7000, USDCAD touched C$1.2910.

- Turkey CPI came in-line at 12.15%, despite Moody's warning on Turkey's credit

rating late Friday, TRY remains resilient against the USD, last Try4.6220.