Risk returns in earnest as G20 grants trade...>

FOREX: Risk returns in earnest as G20 grants trade reprieve

-Commodity-tied FX and the Chinese yuan are the big winners to start the week,

with the Chinese and US Presidents declaring a truce between the two nations on

their recent trade spat. Trump hailed the agreement as an "incredible deal",

resulting in the US delaying a planned hike in tariffs for three months, leaving

negotiators to come up with a longer-term resolution in the meantime. AUD, NZD,

CAD and NOK are the top performers in G10, with Qatar's withdrawal from OPEC

also a supporting factor for oil prices today.

-Safe havens and the greenback have suffered, with the USD Index pulling back

further from YTD highs and within range of the 50-dma at 96.170. AUD/JPY briefly

broke above the Y84 level for the first time since mid-June on the move.

-Manufacturing PMIs in the Eurozone were largely mixed, with upside surprises in

Germany and Spain countered by poor results in Italy and France. UK numbers were

better-than-expected, but stockpiling distorted the headline.

-ISM Manufacturing will be eyed for a repeat of the strength in Chicago PMI last

week and speeches from various Fed members and ECB's Weidmann are also due.