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Trade tensions dominate risk - Risk-off was...>

FOREX
FOREX: Trade tensions dominate risk
- Risk-off was the overriding theme in Asia amid a backdrop of fresh trade
tensions. President Trump warned of more reciprocal relations against other
countries, the WSJ reported Trump plans new curbs on Chinese investment and tech
exports to China, quoting an unnamed source.
- JPY once again outperformed, and as equities remained heavy USDJPY moved
through cloud base and 50-dma support. The risk averse theme spilled over into
Europe, USDJPY touched extended lows of Y109.38, but soon faded.
- EURJPY pressured EURUSD to $1.1629, before staging a minor recovery throughout
the session. Mixed German IFO (Expectations component beat) supported.
- GBP slipped to early European lows of $1.3221, but as the 14-day RSI bottomed
out, quickly pared losses to $1.3267.
- PBC cut the RRR by 50bps on Sunday and said it would release a total of
Cny700bn, effective Jul5. Despite the risk-off theme amid weaker equities,
AUDUSD losses were limited with the pair confined to a 30 pip range.
- USDTRY printed Try4.5382 on extended react to Erdogan's election victory.

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