One way traffic as JPY drops on new highs.....>

FOREX: One way traffic as JPY drops on new highs for equities

-Europe and the US picked up where Asia-Pac left off, with JPY offered and

equity markets buoyant globally. The S&P500 hit a new fresh high, with - once

again - swirling optimism of a US-China trade deal responsible. A break above

Y109 is now needed to trigger the next leg higher for USD/JPY, but the 200-dma

remains decent resistance for now.

-After outperforming for much of the day, GBP retreated into the close upon

release of the latest ICM poll on voting intentions showing the Conservative

lead over Labour contracting to just 7 points from 10 since the previous survey.

This dragged GBP/USD off the day's highs, prompting the pair to retreat back

below the $1.29 handle ahead of the close. This shifts focus to Wednesday's

2200GMT release of the much-watched and historically accurate YouGov MRP survey.

-US trade balance, new home sales and consumer confidence data are all due

Tuesday. Fed's Powell is also due to speak (0000GMT Tuesday/1900ET Monday) which

may elicit some interest. ECB's Coeure, RBA's Lowe and Fed's Brainard are all

also due.