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The confluence of strong Chinese official.....>

FOREX
FOREX: The confluence of strong Chinese official PMI data released over the
weekend and continued optimism re: Sino-U.S. trade talks set the tone of early
Asia-Pac trade today, supporting risk appetite. JPY has underperformed in the
G10 FX space, while the Nikkei 225 has added ~1.7% thus far. The quarterly
Tankan survey revealed that biz. sentiment in Japan fell roughly in line with
exp., while capex plans were unexpectedly solid. The average USD/JPY rate
assumed by major manufacturers for FY2019 was Y108.87 vs. the prior Y109.50.
- Sterling has also struggled amidst protracted Brexit uncertainty, after Friday
saw PM May's withdrawal agreement defeated in parliament yet again, with
questions re: the future of Brexit remaining and as speculation of a snap
general election continues to build.
- The Antipodeans have been buoyed by the aforementioned risk-supportive
factors, but ebbed off of highs. The yuan has also shown some strength, with
USD/CNH dipping further below its 21-DMA, located around today's opening levels.
- Focus today turns to global m'fing PMI data, U.S. retail sales, EZ CPI and
unemployment, as well as comments from ECB's de Guindos and BoC Gov Poloz.

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