Risk off tone, caused by US/China trade.......>

FOREX: Risk off tone, caused by US/China trade concerns, remained apparent

through a generally subdued Asian session. The soft Chinese Caixin Services PMI

applied additional pressure to sentiment.

- USD/CNH provided the main focal point of the session, as the pair traded

within touching distance of CNH6.9000 following a softer PBOC fixing for the

yuan. Local sources suggest PBOC will stand away from intervention if flows not

seen major which could cause capital outflows.

- Pressure on BTP's in early Europe provided the catalyst for the next wave of

EUR sell pressure, and with the addition of misses in Services PMI's, took

EUR/USD to an extended low of $1.1562.

- Cable reluctantly tracked EUR/USD in early Europe but got an added shove lower

on BOE Carney comments(BBC R4) warning of an 'uncomfortably high' risk of no

deal Brexit (potentially could result in a rate cut). Miss in UK Services PMI

added to bearish tone but failed to post fresh lows. 

- US Employment Report, Trade data along with US ISM non-mfg provide US session

interest.