The general backdrop for the overnight........>

FOREX: The general backdrop for the overnight session was the combination of the

recently heightened geopolitical tensions & the PBoC's decision to only

partially roll the maturing MLF at a steady interest rate. AUD was offered vs.

all of its G10 peers, as the latest RBA minutes reaffirmed the potential for a

further interest rate reduction, with Antipodean FX also hit by yuan weakness. 

- CHF drew support from the cautious mood. JPY showed some modest strength as

the Nikkei 225 opened lower after the long weekend; yet, the currency faltered

into the Tokyo fix extending losses as Japanese Trade Min Sugawara expressed the

nation's preparedness to release its oil reserves if needed.

- Sterling's softer spell continued in the wake of UK PM Johnson's showing in

Luxembourg, where he failed to achieve any material success during a meeting

with EU's Juncker & was embarrassed by the Duchy's PM Bettel.

- USD/KRW climbed & closed the recent gap on a softening yuan & broader caution.

- Points of note today include German ZEW survey, Swedish unemployment, U.S.

industrial output and Canadian m'fing sales. The Riksbank will publish its

latest MonPol meeting minutes; ECB's Villeroy, Lane and Coeure will speak.