Risk aversion commenced during the Asian......>

FOREX: Risk aversion commenced during the Asian session Wednesday, the sale of

TRY/JPY by Japanese retail the suggested catalyst with market also reacting to

the Trump/Kim Jun12 meeting put into doubt along with Trump comments on a China

trade deal. JPY was the main beneficiary of this risk aversion with demand

across the board affecting major currency pairs via the crosses. Sharp move

lower in EUR/JPY had taken EUR/USD back to $1.1750, off Tuesday's high of

$1.1830, whilst USD/JPY dropped back to Y110.32 ahead of Europe. This risk off

trading continued into Europe, which along with data misses in EZ flash PMI, as

well as UK CPI, saw EUR/USD extend lows to make a brief show under

$1.1700($1.1699) and cable extend its lows to $1.3347. These rates were holding

off lows in late Europe morning trade but retain a heavy feel. Large Y110.00

expiry for today's NY cut($2.01bn) has acted to keep USD/JPY anchored close by,

off its low of Y109.73. 

- US New Home Sales at 1400GMT then FOMC Minutes at 1800GMT provide focus into

the NY session. Market will look for reference to neutral rates in the Minutes

and chance for a slightly more hawkish tone.