Tepid equity bounce leave risk on the.........>

FOREX: Tepid equity bounce leave risk on the backfoot

- European stock markets are unsurprisingly lower early Tuesday, with the drop

in US equities late Monday still taking a toll and prompting European tech firms

to underperform. In currency markets, this has translated into a firmer CHF at

the expense of AUD, NZD and GBP posting the largest losses from yesterday's

highs.

- Data from this morning has been generally poorer-than-expected, with Eurozone

industrial production and German ZEW surveys missing forecast. The lowlight,

however, was UK May monthly GDP, which fell well below forecast and is throwing

some doubt on the hopes of a V-shaped recovery at the end of Q2. May GDP was

expected to bounce by over 5%, but the small 1.8% rise in output left markets

wanting. GBP/USD retreated towards $1.25 on the news, with key supports now

sitting just below at $1.2429/36.

- Earnings begin in earnest today, with updates due today from JPMorgan,

Citigroup, Wells Fargo and Delta Airlines. The US CPI release for June is the

data highlight Tuesday, with CPI seen rising by 0.5% on the month.