Quiet morning gives way to frenetic...........>

FOREX: Quiet morning gives way to frenetic afternoon for currencies

-After a sanguine start to the first full trading session of 2020, markets

picked up on the hawkish comments emanating from the US Defense reps Esper and

Miley, who stated the US are prepared to deploy further US forces in Iraq,

adding that any further attacks on the US Embassy would be met with a "buzzsaw".

The comments strengthened an already-underway Treasury bid that bled through

into a buoyant JPY, which was the firmest currency in G10 Thursday.

-GBP retains its erratic reputation and sold off almost the entirety of the

Tuesday gains on little news, returning the focus to the 50-dma support at

1.2990 - a break below which would open further losses. GBP was the weakest

across G10, followed by AUD as markets attempt the gauge the economic damage the

current fires could be causing.

-Inflation is front and centre Friday, with CPI releases due from Germany and

France after Thursday say 5y inflation expectations in the Eurozone hit

multi-month highs, as well as US ISM manufacturing for December and the FOMC

minutes.