Political uncertainty in Washington...........>

FOREX: Political uncertainty in Washington continues to weigh on markets.

- Eur/Usd briefly traded above $1.24 in the European morning, before ECB Draghi

remarks that highlighted the sensitivity to exchange rate risk, quickly reversed

to $1.2364. Recovery efforts were capped at $1.2397 in early NY and later

drifted to session lows of $1.2347.

- Soft headline US Retail Sales was countered by upward revisions to January and

firmer PPI data. Usd/Jpy touched react lows of Y106.32 but was quick to pare

losses. The USD again encountered fresh pressure to Y106.07 amid a backdrop of

political uncertainty, soft UST yields (near March lows) and weaker equities.

- Cable failed to build on early NY gains, rate touched $1.3992 before meeting

resistance ahead of $1.40 ($1.3996 - Asia high).

- Having broken a major descending trend line off the YTD high, strong China IP

data out overnight saw the AUD continue on a firm tone. Gains extended through

$0.7900 in early NY, touched highs of $0.7917 before fading.

- Tomorrow sees policy rate meetings from the SNB (0830GMT) & Norges Bank

(0900GMT), with both expected to remain on hold.