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The USD has edged higher, although headline...>

FOREX
FOREX: The USD has edged higher, although headline flow has been light. News
flow over the weekend centred on Brexit matters, from both sides of the channel,
Italy's credit rating outlook being downgraded at Fitch & the lack of a deal in
the latest round of U.S.-Canada NAFTA talks. The ensuing risk off tone observed
in Asian equities made for some JPY outperformance.
- Elsewhere GBP has been on the back foot, following a string of more combative
Brexit headlines over the weekend. EU Brexit negotiator Barnier said that he is
"strongly opposed" to UK PM May's Chequers proposals on future trade. This comes
after some suggested that Barnier struck a more conciliatory tone last week,
which had allowed GBP to rally. The weekend also saw comments from UK PM May, as
she once again pushed back against the idea of a second referendum, and vowed
that she wouldn't surrender her Chequers plan.
- CAD weakened on no NAFTA deal/hawkish weekend comments from U.S. Pres Trump on
U.S.-Canada trade matters. AUD was dented by a weaker than exp. AU retail sales
release, with AUD/USD registering a fresh YtD low. NZD was also a little softer.
- Focus today falls on global m'fing PMI data & comments from ECB's Mersch.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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