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The U.S.-Iran situation kept a lid on risk....>

FOREX
FOREX: The U.S.-Iran situation kept a lid on risk appetite, even as initial
caution dwindled somewhat. The weekend saw a follow-through from Friday's
killing of a top Iranian military commander by the U.S. Tensions escalated into
sabre-rattling on either side, Iran's decision to end uranium enrichment limits
and other combative gestures. Elsewhere, China's Caixin services & composite
PMIs suggested that the services sector expanded slower than forecast.
- Firmer oil prices kept CAD afloat, allowing it to top the G10 pile. At the
same time, however, SEK is the worst performer in the basket. The Antipodeans
failed to shake off their weakness amid broader risk aversion & a slight
disappointment provided by the Chinese data.
- On the other hand CHF benefited from safe haven demand & fares quite well. The
yen, however, gave away its earlier strength. USD/JPY fell below Friday's worst
levels and printed new multi-month lows before paring losses.
- USD/KRW showed above the KRW1,170.00 level but ebbed off highs thereafter.
- Global services & composite PMI data, German retail sales & Eurozone PPI
headline the data docket today. Mideast tensions retain the spotlight.

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