Safe haven currencies were bid overnight,.....>

FOREX: Safe haven currencies were bid overnight, with JPY and CHF leading gains

among G10 FX, as Sino-U.S. trade spat continued to inflict damage on risk

appetite. Major regional stock indices slid alongside U.S. equity futures, with

Chinese state media offering some fresh hard line rhetoric aimed at Washington.

- The Antipodeans took a hit from the risk-off mood. Yuan weakened, but a

stronger than expected fix from the PBoC cushioned the currency somewhat.

- Sterling was the worst G10 performer, after Cabinet minister Leadsom quit the

Cabinet, citing PM May's Brexit policies. The weakening of PM's position creates

uncertainty re: possible succession & its implications for Brexit.

- Indian rupee rallied as early voting trends pointed to the lead of PM Modi's

ruling coalition. Votes should be counted by the end of the day.

- Focus today turns to German GDP (f) & Ifo survey, global flash PMI readings,

Swedish unemployment and U.S. new home sales. Speeches from Fed's Kaplan, Daly,

Bostic & Barkin, ECB's de Guindos & Nowotny, and Riksbank's Skingsley are also

due, while the ECB will publish its latest MonPol meeting minutes.