Surging crude price underpins petrocurrency...>

FOREX: Surging crude price underpins petrocurrency rally

-The much-covered surge in oil prices Monday underpinned a firm commodity-tied

currency rally at the open, resulting in gains of as much as 0.8% for the CAD

and NOK in Asia-Pacific trade. A good portion of these gains have been sold in

early Europe as the oil price retraces, but both currencies still sit at the top

of the G10 pile. Focus turns to any firm response from Trump toward Iran after

the Middle-eastern country warned the US it's prepared for "fully fledged war".

Trump's Twitter account will certainly take focus headed into the NY crossover.

-Elsewhere, GBP sits slightly softer as markets book profits on last week's firm

performance and as EU's Juncker indicated he doesn't expect his bilateral

meetings with UK PM Johnson this week to result in a new Brexit deal. GBP/USD

retreated back below $1.2450, but Friday's lows of $1.2327 still look out of

reach for now.

-US Empire Manufacturing and Canadian existing home sales are the data

highlights Monday. ECB's Chief Economist Lane also speaks at 1215BST/0715ET. The

FOMC meeting Wednesday is the focus for markets from here.