Risk appetite was dented as U.S. Pres Trump...>

FOREX: Risk appetite was dented as U.S. Pres Trump outlined 5% tariffs on all

Mexican goods to be implemented on June 10, with the potential to rise if Mexico

fails to curb illegal migration into the U.S. A BBG report stating that China is

prepared to curb rare earth exports to the U.S. added to existing worries, while

the SCMP story stating that U.S. & Chinese Presidents will meet in Japan next

month, provided nothing more than a brief and modest sigh of relief.

- JPY & CHF were the main beneficiaries of the resulting flight to safety, with

the former topping the G10 pile. Conversely, the Antipodeans managed to recover

some of their initial losses, leaving CAD & NOK as the worst G10 performers.

- MXN largely held losses registered in reaction to the tariffs headlines. 

- KRW roughly halved its early losses, while BoK Gov Lee said that the bank

"does not take FX steps with KRW1,200 level in mind.

- TRY softened amidst worries re: U.S.-Turkey tensions.

- Worth noting China's off'l m'fing PMI moved into contractionary territory.

- Focus turns to U.S. PCE & personal income/spending data, Italian & German CPIs

and Italian & Canadian GDPs. ECB's Visco, Fed's Williams & Bostic will speak.