Markets steady in Europe after Navarro........>

FOREX: Markets steady in Europe after Navarro whipsaw in Asia-Pac hours

- Markets look rosier headed into the NY crossover, with the greenback and JPY

sold wile NOK, EUR and SEK advance. Sentiment was shaken in Asia-Pac hours by

conflicting messaging out of the White House, as advisor Navarro stated that the

trade deal with China was "over". Aggressive equity selling and flight to havens

followed, but this was swiftly reversed as officials downplayed the comments and

Navarro complained that his words had been taken out of context. The follow

through saw USD/JPY rally above Y107, which is holding well ahead of the US

crossover.

- The equity bounce has persisted this morning, with the e-mini S&P just a few

points shy of the Friday high. Firmer than expected PMI numbers have helped

soothe, with continental and UK services & manufacturing sectors all solidly

beating expectations. The UK and French numbers were a particular source of

strength, with French numbers tipping above 50.

- Markets watch US PMI numbers going forward as well as new home sales for May.

Fed's Bullard is also scheduled to speak.