The USD traded with a soft tone in early......>

FOREX: The USD traded with a soft tone in early Europe, alongside JPY, as market

moved into a risk-on tone, possibly prompted by US-EU trade talks & optimism

over NAFTA talks, before the DXY recovered.

- Cable dipped to $1.3054, then bounced to $1.3082 in reaction to strong UK wage

data, before falling again, as the Evening Standard reported that the EU warned

against too much optimism re: Brexit red lines. Jittery trade continued through

the remainder of the day with the rate closing above $1.3000. Late reports from

both the BBC & ITV pointed to growing disdain towards PM May from the ERG

Eurosceptic arm of the Conservative Party, although the BBC suggested that the

group wasn't planning any imminent action against her via a leadership contest.

- CAD benefitted from late reports suggesting that Canada is ready to include

the dairy industry in NAFTA negotiations, with generally warm comments from

Trump re: the prospect of a deal lending further support.

- USD/JPY continued its slow climb through NY, with part of the move linked to a

JPY negative M&A deal.

- Fed's Brainard & Bullard headline on Weds, with Riksbank Gov. Ingves also due.