Risk tentatively recovers as bears take a.....>

FOREX: Risk tentatively recovers as bears take a breather

-JPY was the weakest performing currency in G10 Tuesday, with USD/JPY showing

above the Y110.50 mark to touch the week's best levels as risk-off sentiment

waned somewhat throughout the day. Nonetheless, the sharp moves seen post-FOMC

last week are yet to be retraced, with the Friday highs of Y110.90 out of reach

for now.

-GBP traded somewhat firmer throughout early Europe, prompting GBP/USD to top

out at $1.3262 as a number of arch-Brexiteers appeared to come out of the

woodwork to support PM May's deal. Nonetheless, indicative votes will likely go

ahead in parliament Wednesday, but that doesn't mean PM May's deal is completely

off the cards.

-EM FX had a somewhat smoother session as the Turkish central bank ratcheted up

the cost of shorting the TRY, although volatility markets remain fraught:

USD/TRY overnight vols held above 30 points for much of the session.

-The RBNZ rate decision, US trade balance data and speeches from no fewer than 8

ECB members take focus Wednesday.