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Soft headline NFP data & continued worry......>

FOREX
FOREX: Soft headline NFP data & continued worry over the US-Chinese trade
outlook weighed on the USD on Friday.
- The risk off theme allowed USDJPY to moved sub-107.00, although the cross is
back above that level this morning, perhaps on WSJ reports suggesting that North
Korea is ready to meet with the US to discuss de-nuclearisation
- Momentum type accounts were the main drivers in GBP, allowing cable to briefly
top 1.4100, while EURGBP bottomed just above 0.8700.
- USDCAD printed 6-week lows after the strong Canadian labour market report, but
CAD strength faded as equities/crude sold off. It is worth noting that reports
made earlier on Sunday suggested that there will be no NAFTA deal in principle
announced at the upcoming summit of the Americas in Lima.
- AUDUSD strength faded as risk sentiment diminished, although NZD was a little
more resilient.
- The Asia-Pacific docket is light on Monday, however, China returns from an
elongated holiday weekend. The docket looks limited elsewhere on Monday, with
comments from ECB's Praet & the BoC's Business Outlook Survey set to headline.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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