Risk on flows drove FX price action in........>

FOREX: Risk on flows drove FX price action in today's Asia-Pacific session,

sending JPY to the bottom of the G10 pile, as the upbeat comments from U.S.

President Trump re: trade relations with China hit the wires. Trump's remarks

also lent support to the Antipodeans overnight. 

- DXY moved lower initially, pressured by President Trump telling RTRS that the

"Fed would be foolish" to hike rates this month, adding that he needs rate

flexibility as Washington is waging several trade battles. However, DXY

recovered from lows and operates around session highs, a touch higher on the

day. 

- Sterling has ticked higher against most of G10 FX, but failed to get anywhere

near reversing yesterday's losses. As a reminder, some members of the press have

reported that their sources believe that 48 no-confidence letters have been

submitted to the 1922 Committee to trigger a Tory leadership vote, while other

reports suggest that the threshold has not been met. 

- Focus turns to U.S. CPI figures and EZ industrial output due later today, with

one eye on SEK as PPM flows go into action.