Monday's Asia-Pac & European sessions were....>

FOREX: Monday's Asia-Pac & European sessions were largely free of incident for

FX, with most majors trading well within last week's range (despite German

Chancellor Merkel announcing she won't run for the CDU leadership, and therefore

the Chancellorship, at the next election and the UK budget). This allowed

markets to consolidate for much of the day, although any notion of a risk

recovery in equities, yen crosses or AUD was quelled on Bloomberg reports that

the U.S. is planning for another wave of sanctions on Chinese imports should the

upcoming Trump-Xi talks breakdown with no agreement. This dragged USD/JPY from

session highs north of Y112.50 and prompted AUD to sit at the bottom of the G10

table. Although subsequent reports from Fox re: White House unaware of any new

developments pertaining to the BBG story limited the moves.

- There was far more action in emerging markets, with BRL initially rallying

further before slipping on right-wing Bolsonaro's election victory, and MXN

dropping sharply as the Mexican President scrapped the construction of a new

airport, hinting at a hostile investor environment in the future.

- Focus Tues falls on German regional/national CPIs, ECB speak & RBA's Bullock.