Mixed and muted start to the week, with.......>

FOREX: Mixed and muted start to the week, with markets largely consolidating

-Last week, DMFX eyed emerging markets for directional clues, with USD/TRY in

particular a bellwether for wider risk appetite - prompting JPY, CHF and USD to

follow. Today's trade in EMFX is well within Friday's range, with MXN, ZAR

stronger and TRY weaker against the greenback.

-EUR trades slightly lower and is one of the worst performers among G10 despite

outperformance in Italian, Greek and Spanish bonds, with IT, GR, SP 10yr yield

spreads dropping close to 3bps against GE. While this follows the conclusion of

Greece's bailout programme, economic developments in the periphery remain few

and far between.

-CNH failed to rise in tandem with CNY this morning despite the PBOC's raised

reference rate, largely due to the pullback in the CNH/CNY rate today. As a

result, USD/CNY is lower for the third consecutive session, while USD/CNH is

modestly higher.

-Newsflow proved inconsequential with near-term focus shifting to Fed minutes

Wednesday and the beginning of Jackson Hole Friday.