The promise of stimulus measures in the.......>

FOREX: The promise of stimulus measures in the U.S. inspired a partial unwinding

of y'day's sharp moves. U.S. Tsy Sec Mnuchin said he talks w/Fed Chair Powell

every day, adding that Pres Trump is ready to use "all economic tools." The

POTUS floated the idea of implementing payroll tax cuts & targeted support for

industries hit w/Covid-19 (details coming up later today). Participants dumped

safe haven FX, with USD/JPY staging an impressive rally onto the Y104.00 handle.

- Oil prices moved away from multi-year lows printed during y'day's oil mkt

crash. NOK & CAD were bid, becoming the only G10 currencies to outperform USD. A

solid showing from MXN & ZAR as well, as they corrected y'day's sell-offs.

- Antipodean FX traded mixed. NZD softened as FinMin Robertson said that the

RBNZ has room to move on rates & urged NZ banks to pass on any cuts, but found

some relief as RBNZ Gov Orr said that NZ doesn't need unconventional MonPol.

- KRW was the best currency in Asia as risk appetite reared its head, while

local off'ls talked up potential for stabilising measures. The yuan firmed up,

unfazed by Chinese in-line CPI & marginally below-forecast PPI.

- The focus turns to final EZ GDP, French & Italian IPs & Norwegian CPI.