Turnaround Tuesday? -After a surprisingly.....>

FOREX: Turnaround Tuesday?

-After a surprisingly busy Monday session (particularly with the UK absent),

markets have taken the opportunity to reverse course somewhat, sending Monday's

best performers lower and prompting a recovery in the laggards. As such, AUD

sits at the bottom the pile alongside NZD and CHF, while JPY, GBP and SEK are on

the front foot.

-Newsflow has been few and far between following the somewhat eventful

conclusion of the G7 summit in Biarritz, France. Equities are mixed, with core

Europe generally edging lower after a strong session to start the week, with

underperformance in the core markets while peripheral Spanish and Italian

equities sit stronger. A slightly flatter US yield curve headed into the Tuesday

open has sapped some of the strength out of the greenback, but yesterday's lows

of 97.477 in the USD index are yet to be challenged in any material way.

-It's another light data calendar, with Richmond Fed Manufacturing and August US

Consumer Confidence the main releases. ECB's de Guindos speaks alongside BoE's

Tenreyro on monetary policy in Manchester, UK at 1300BST/0800ET.