Simmering geopolitical tensions work..........>

FOREX: Simmering geopolitical tensions work against Antipodeans

-After a positive close in the US, Asia-Pac equities turned south, with the

Nikkei 225 slipping 1% or so alongside simmering geopolitical tensions between

the US and Iran. Reports suggested Trump had authorised a series of strikes

against Iran in response to the downing of a US drone, but pulled out at the

last minute. USD/JPY slipped further on the news, bottoming out at Y107.05

before recovering slightly.

-European equities are faring more favourably, with mainland indices higher by

0.5% or so, but US equity futures are indicating a lower open for the final

session of the week. The fragile sentiment has worked in favour of havens but

against Antipodeans, with AUD and NZD at the bottom of the G10 pile. EUR trades

well, however, following better-than-expected PMI from France and Germany,

helping prop up EUR/USD above $1.13.

-Focus turns to an interview with Fed's Clarida due at 1130BST, a speech from

BoE's Tenreyro and Canadian retail sales, US existing home sales and US PMI data

for June.