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Midday Trade

FOREX
FOREX: The weekend developments regarding the U.S.-China trade war "truce" and
the ensuing risk on flows have dominated early FX trade, with the USD broadly
lower as a result. USD/CNH last ~400 pips lower at CNH6.9115, from early lows of
CNH6.8952. Elsewhere, AUD & NZD have outperformed, but trade back from best
levels. AUD/USD last $0.7372, with bulls looking to the Aug 21 high at $0.7382.
- Cable has filled the early gap higher, with tory Party bickering, threats from
the opposition Labour Party re: a confidence motion against UK PM May if her
Brexit deal fails & the Telegraph reporting that May's chief Brexit adviser
Oliver Robbins has secretly warned her that the customs backstop is a "bad
outcome" for the UK all limiting GBP, which now trades unchanged at $1.2750.
- USD/JPY deals 20 pips higher at Y113.75, with bulls eying Y114.00. Looking
further afield, MXN has benefited from reports suggesting that Mexican Pres.
AMLO is looking to continue the construction of a new airport in Mexico City,
that had previously been shelved.
- Global M'fing PMI data, U.S. M'fing ISM data, Fedspeak from Clarida, Quarles,
Williams, Brainard & Kaplan & an address from BoE's Haldane all due Monday.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com