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FOREX
FOREX: Price action had been contained until a BBG sources piece hit late on,
which noted that U.S. President Trump is preparing to release a list of an
additional $200bn in Chinese products to be hit with tariffs. A U.S. admin off'l
has confirmed the earlier BBG sources piece, noting that "the Trump admin is
likely to announce a list of $200bn in tariffs on Chinese goods as early as
Tuesday night. The list of Chinese goods subject to U.S. tariffs will not be
final until after the public comment period." JPY garnered a safe haven bid,
USD/JPY shed around 40 pips before recovering to around Y111.00, last Y110.85.
This came after the pair tested the mid-May highs of Y111.40 earlier on. The
greenback edged higher vs EUR, GBP, AUD, NZD & CAD following the report, with
USD/CNH adding over 200 pips at the latest count.
- GBP had recovered slightly from yesterday's politically-induced weakness, but
cable's weekly $1.3363 high didn't come under threat at any point.
- Focus now turns to Wednesday's BOC decision, speeches from ECB's Draghi,
Villeroy, Praet & Mersch, as well as BOE's Carney.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com