Poor earnings and trade ire underpin JPY......>

FOREX: Poor earnings and trade ire underpin JPY

-European equity indices sit lower ahead of the NY crossover, with a slew of

poor corporate earnings and further concern surrounding global trade (Senator

Grassley late yesterday warned that Trump is 'inclined' to install auto tariffs,

adding that the government shutdown may delay trade talks with the EU and

Japan). Dented sentiment has underpinned a recovery in the JPY so far today,

which sits at the top of the G10 pile, although yesterday's lows in USD/JPY are

yet to be troubled.

-NZD is the poorest performer, pressuring NZD/USD through $0.6750 to the

downside, with a poor REINZ house sales numbers (-12.9% vs. Prev. +2.6%) largely

responsible alongside touted funding pressures.

-DXY, alongside the EUR, is relatively buoyant, but gains are minimal with the

government shutdown still stymying the release of any government data. Focus

turns to weekly jobless claims data and the Philly Fed business survey. ECB's

Lautenschlaeger and Fed's Quarles speak and earnings are due from Morgan

Stanley, Netflix and American Express.