The much awaited USD underperformance via.....>

FOREX: The much awaited USD underperformance via month-end rebalancing was

apparent into the 4pm London fix, although the majors' fortunes were mixed.

- US Commerce Secretary Ross outlined details of steel & aluminium tariffs for

the EU, Canada & Mexico, effective from midnight, but some leeway has been given

to Argentina, Australia and Brazil. NAFTA issues were also apparent. 

- CAD had already been holding heavy after the release of soft Quarterly

Annualised GDP, and touched extended reaction highs of 1.2991 on the

tariff/NAFTA issues.

- USDMXN lifted to its highest levels since early 2017 > 20.00 but faded.

- Metal tariffs/no confidence vote on Spanish PM Rajoy started to weigh on the

EUR. EURUSD slipped to 1.1641 followed by an immediate recovery to 1.1665/70

amid choppy 2-way price action. Headlines that Italy's 5SM & Lega had agreed on

a cabinet provided a welcome relief to challenge 1.1700, the cross is now back

above the figure.

- CHF was the best G10 performer in the month of May, while GBP & EUR lagged.

- US NFP, China Caixin M'fing PMI, EZ M'fing PMIs & ISM M'fing headline Friday.