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Tentative risk-on returns, bumping USD/JPY....>

FOREX
FOREX: Tentative risk-on returns, bumping USD/JPY north of 111.50
-JPY sits at the bottom of the G10 pile Wednesday morning, with Asia-Pac
equities and European markets advancing. Risk appetite was initially triggered
by a wave of firm Australian data, with retail sales and trade balance both
beating expectations and nudging AUD/USD back above $0.71. This was followed by
firm Chinese services PMI data and an FT story indicating further progress in
Sino-US trade talks: "the US and China have resolved most of the issues standing
in the way of a deal".
-GBP remains buoyant following yesterday's statement from PM May as she appealed
for a cross-party approach to Brexit. GBP/USD met some resistance ahead of $1.32
before retreating slightly, with further weight added from a disappointing
services PMI reading that points to UK GDP stagnating in Q1. IHS Markit now
forecast UK GDP likely suffering a downturn in Q2.
-US ADP employment change, ISM non-manufacturing data and final composite PMIs
are due. Fed's Bostic, George, Barkin and Kashkari are all due to speak as well
as ECB's de Cos.

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