***Risk off flows were apparent on Thursday...>

FOREX: ***Risk off flows were apparent on Thursday and through the early part of

the Asia-Pacific session on Friday.

- A sharp fall in US equities on China trade issues & continued worry over the

tech sector drove JPY demand, with USDJPY crossing below 105.00 in early Asian

hours, YtD lows and the figure gave way, as a large barrier option was

reportedly taken out. Below the figure there has been talk of decent sized

buying from a trust bank around 104.70, with further institutional bids rumoured

around 104.50. 

- GBP was choppy on Thursday, after a 7-2 vote split at the BoE surprised many,

as the MPC voted to stand pat, but the initial knee jerk higher was reversed as

the language used this time out wasn't as forceful as the tones used when the

BoE signalled its last hike. Cable last 1.4110.

- USDCAD bounced from circa 1.2830 to reclaim the 1.2900 handle, as BoC Senior

Deputy Gov. Wilkins offered little fresh insight on MonPol.

- Risk events on Friday include US Durable Goods, Canadian CPI & Retail Sales,

with Fed's Bostic, Kashkari & Rosengren & BoE's Vlieghe all set to speak.