Political uncertainty continued amid risk.....>

FOREX: Political uncertainty continued amid risk off flow on Tuesday, as Italy

was again the main driver of risk through the European morning. With Autumn

elections looking increasingly likely and the MS5/League vote share rising since

last week (according to opinion polls), Italian 2-Year yields underwent their

largest one-day rally since 1992 as Italy's bonds plummeted across the curve.

- As the US session got underway equities opened deep in negative territory,

with JPY the main beneficiary amid the risk averse theme.

- GBPUSD continued sub-1.33 with losses of ~3.75% MtD in May, on course for its

biggest monthly fall since June 2016 (-8.09%). EURUSD is showing MtD losses of

~4.20% & is on course to register its 7th consecutive weekly fall. Last 1.1545.

- Weaker oil prices amid a stronger USD pressured the commodity FX space,

meaning that USDCAD comfortably held above $1.30, as NZD & AUD suffered too.

- German state & national CPI, US GDP 2nd estimate, ADP employment data  the

main highlights tomorrow.