Risk breathed a sigh of relief, with JPY......>

FOREX: Risk breathed a sigh of relief, with JPY tumbling to the bottom of the

G10 pile. A surge in U.S. equity futs, which saw S&P 500 e-minis hitting

limit-up, pushed USD/JPY higher. The rate strengthened further over the Tokyo

fix, eventually showing above Y107.00. Although it halved earlier gains

thereafter, the yen remains the worst G10 performer, with CHF also faring

relatively badly. Sterling traded on a softer note, even as the press reported

that Cll'r Sunak will reveal his plans to help businesses hit by Covid-19.

- Commodity-tied FX firmed up with crude. NZD rallied as FinMin Robertson

unveiled an aggressive NZ$12.1bn stimulus package, worth 4% of NZ GDP, calling

it the first stage of response. That said, he added that recession is "almost

certain." The move in NZD was pared as BBG ran headlines from NZ Tsy, which exp.

2020-21 GDP to fall 1% Y/Y (albeit followed by a sharp rebound in '22).

- Despite a softer than exp. PBoC fix, USD/CNH slid & tested the CNH7.0 mark.

KRW was pummelled by y'day's rate cut from the BoK. PHP trading was closed.

- German ZEW Survey, UK Labour Mkt Report, U.S. industrial output & retail

sales, as well as comments from ECB's Rehn are due today.