The USD was lower against the bulk of the.....>

FOREX: The USD was lower against the bulk of the majors, although the AUD was

the worst fairing. Fed Governor Quarles failed to touch on MonPol today, after

weekend comments from Quarles, George, Bostic & Kaplan offered little new.

- JPY strength was evident from the early part of the session, as USDJPY dipped

below 109.00, after the Iranian President Rouhani warned of repercussions if the

US pulls out of the nuclear accord in a batch of weekend comments. The BoJ left

the size of its Rinban operations covering the 1-5 Year & 10-25+ Year buckets

unchanged (although there was some chatter re: the potential for trimming the

size in the early part of the session).

- EURUSD has moved back from highs, to deal at 1.1965, with GBP now the

outperformer, as cable deals 25 pips higher at ~1.3555. AUDUSD was the

underperformer with little to trigger the move lower (outside of touted offshore

flows) although AUDUSD trades off worst levels after an uptick in oil helped

commodity linked FX.

- Monday's risk events include comments from Fed's Bostic, Kaplan, Evans &

Barkin.