Safe haven FX underperformed overnight,.......>

FOREX: Safe haven FX underperformed overnight, despite reports stating that the

U.S. will go ahead with the planned increase of China tariffs at 0501BST.

Ministerial level talks in Washington wrapped up without a breakthrough, but

will continue on Friday. BBG cited sources suggesting that today's negotiations

brought "little to no progress."

- NZD and AUD posted gains. Westpac no longer exp. The RBNZ to cut the OCR to

1.25%, which triggered a marginal uptick in NZD/USD.

- The RBA SoMP and BoJ Summary of Opinions were largely shrugged off by the

respective currencies.

- Touted central bank interventions supported KRW, as USD/KRW threatened a clean

break of KRW1,1800. Elsewhere, the Turkish central bank's "backdoor tightening,"

implemented yesterday, seemingly triggered further TRY demand in Asia (perhaps

giving Mrs Watanabe a fresh catalyst to add to existing TRY/JPY longs).

- Focus today turns to U.S. & Norwegian CPIs, French, Italian & UK industrial

outputs, Italian & UK retail sales, UK GDP & trade balance and Canadian labour

mkt data. The central bank speakers' docket is quite full.