Stock slump fuels small gains for JPY, EUR....>

FOREX: Stock slump fuels small gains for JPY, EUR and CHF

-The S&P500 slipped below the 50-dma for the first time since mid-April as

markets continue to price in the material risk of a protracted trade spat

between the US and its largest trading partners. European equity markets

followed the drop in Asia-pacific indices from the off, resulting in the FTSE100

and DAX among others closing lower by well over 2%. The souring sentiment

underpinned bonds, the JPY and EUR. In a sign that markets are concerned of the

implications for the US economy, the greenback failed to benefit as it has done

in recent sessions.

-Falling oil prices read across into energy-tied FX, resulting in AUD, NZD, CAD

and NOK populating the bottom spots on the leaderboard today, although price

action was relatively small in what was an inside day for FX trading ranges.

-A light data calendar will keep the focus on global trade ties, but speeches

from ECB's Coeure, Hansson and De Guindos and BoE's McCafferty (an outgoing MPC

member) will keep markets on their toes Tuesday.