Markets stable, but uneasy -Asset markets.....>

FOREX: Markets stable, but uneasy

-Asset markets have generally held recent ranges after risk sentiment was

granted a minor reprieve yesterday, but there remain a number of factors

signalling that markets remain uneasy. USD/JPY has dipped back below the Y109.50

level, with precious metals also remaining bid as European equity implied

volatility measures holding recent gains. Short-end implied FX vols are also

generally higher in DMFX after pulling back Tuesday.

-As a result, AUD and NZD sit at the bottom of the pile, with AUD plumbing fresh

cycle lows after closing at the worst levels since January 2016 earlier this

week.

-Meanwhile the TRY has had a tough time of it, underperforming broader EMFX as

Turkish authorities look to impose a 0.1% tax on FX sales, a measure the

market's taken as a pretty transparent method to steady the TRY rate. USD/TRY,

however, remains below the week's highs printed Monday at 6.1315.

-Focus turns to US retail sales and Canadian CPI. Speeches are due from Fed's

Quarles & Barkin and ECB's Coeure & Praet.