The USD is on the front-foot with high beta...>

FOREX: The USD is on the front-foot with high beta FX struggling after U.S. Pres

Trump tweeted "China has been paying Tariffs to the USA of 25% on $50bn of High

Tech, and 10% on $200bn of other goods. These payments are partially responsible

for our great economic results. The 10% will go up to 25% on Friday. $325bn of

additional goods sent to us by China remain untaxed, but will be shortly, at a

rate of 25%. The Tariffs paid to the USA have had little impact on product cost,

mostly borne by China. The Trade Deal with China continues, but too slowly, as

they attempt to renegotiate. No!" Predictably, JPY sits at the top of the G10 FX

pile, with risk-off flows in full flow. AUD & NZD sit at the bottom of the G10

FX space, although CNH's move is more noteworthy, with USD/CNH up over 5 points

at writing, topping CNH6.7900.

- Reports of movement re: an impending Brexit deal between the UK's Tory &

Labour parties, and an open plea from UK PM May to Labour leader Corbyn to come

to a deal, were quickly played down by labour frontbenchers & source reports.

- A limited Asia-Pac session in terms of data flow, with Chinese Caixin services

PMI providing the highlight. Japan is still out on holiday.