Trump ups the trade war ante as central.......>

FOREX: Trump ups the trade war ante as central banks convene in Sintra

- Safe havens garnered a bid as Trump upped the ante in the trade war and

ordered the US Trade Rep to identify an additional $200bn in Chinese goods for

tariffs at a rate of 10%, this is a larger nominal amount than had been

expected. A second bout of risk off flows hit after China vowed to take strong

countermeasures if the US issues a new sanctions list.

- USD/JPY trades below its 200-DMA, and now eyes Y109.11 (55-DMA).

- AUD/USD has managed to print fresh YtD lows owing to Australia's sensitivity

to China, with $0.7368 (June 2017 low) providing the next level of downside

interest, although option-linked interest is noted at $0.7470-75 (A$1.63bn set

to roll off at today's 10AM NY cut). The release of the RBA's June meeting

minutes had no effect on the currency.

- NZD/USD never threatened to challenge $0.6880 (Low May 30).

- Elsewhere EUR & GBP outperformed the greenback.

- ECB's Draghi, Praet & Lane and Fed's Bullard are all set to speak at the ECB's

Sintra conference later today.