Negative start largely erased as US stems.....>

FOREX: Negative start largely erased as US stems the losses

- After a particularly pessimistic start to the Asia-Pacific and European

sessions, the opening of US markets proved to be the turnaround point, with

global equity markets trimming losses nicely ahead of the close. This left the

Monday session largely neutral and providing few fresh cues for asset prices. 

- Markets still clearly remain unnerved by the risk of a second COVID-19 wave

after reports that Beijing's outbreak over the weekend has now topped 100 cases.

Currencies remain somewhat defensive as both JPY and CHF gain against most

others in G10. AUD traded weaker throughout, but is well off the lows ahead of

the NY close.

- RBA minutes, UK jobs numbers and German ZEW survey are due. US retail sales

will likely be the most closely watched release, being the first litmus test for

the strength of any economic bounceback in May. Industrial production data is

also on the docket. The Bank of Japan rate decision crosses during the Asia-Pac

session, with speeches from ECB's Visco, BoC's Macklem and Fed's Clarida

following.