The USD shook off most of its early Asia......>

FOREX: The USD shook off most of its early Asia weakness, while the JPY has

continued to underperform as risk on sentiment recovers. 

- There appeared to be a degree of USD supply heading in to the Tokyo fix, which

has since abated, aided by positive comments from US President Trump re: Trade,

while USDJPY has moved higher after Japan's former tax chief Sagawa stated that

Japanese PM Abe & his wife had no part in the Moritomo scandal.

- AUD & NZD underperformed, although ranges were largely contained.

- Most of the major USD crosses now trade around unchanged levels, with the

continued strength of the Chinese Yuan the major talking point. USDCNY now sits

at levels not seen since the devaluation of August 2015.

- Credit Agricole's preliminary month/quarter end FX rebalancing model points to

strong USD buying, which will please dollar bulls after the tumult they have

suffered in recent sessions.

- Risk events on Tuesday include addresses from voting FOMC member Bostic &

ECB's Vasiliauskas.