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Risk appetite slowly re-emerged following.....>

FOREX
FOREX: Risk appetite slowly re-emerged following reaction to weekend Trump trade
comments, which allowed USD/JPY to sit comfortably back above 200-dma(Y109.03),
though seen needing to break Y109.50 to boost upside potential.
- Sterling took a slight knock back on weak wage data, but rising hopes for a
Conservative majority in Dec election have allowed cable to recoup reac losses,
with EUR/GBP holding back below Gbp0.8600. EUR/USD confined to a $1.1018/39
range, with outside support noted between $1.1010/00 vs resistance at $1.1060.
- NZD retained a soft tone through the European morning after being pressed
lower in Asia on release of a softer 2-yr inflation expectations which has
opened the chance for a 25bp cut at tonight's RBNZ meeting. More interest now to
see if move seen dovish, if not could see bounce back. AUD suffered from a NZD
spill-over but improvement in the local NAB business confidence survey helped
AUD avert further losses, although initial reaction was limited.
- KRW firmed up amid talk of exporters taking profit from a rebound in USD.
- USD/CNH tested CNH7.00 to the downside but failed to consolidate below.
- BoC's Dinis, Fed's Harker and Kashkari, and US Pres Trump all appear later.

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