U.S. Senate drew anger from China as..........>

FOREX: U.S. Senate drew anger from China as lawmakers unanimously backed a bill

that aims at supporting the Hong Kong protests. Since the House of Reps passed

their own HK bill earlier, the two chambers need to work out a common version of

the document before it is sent to the White House. The FX space reacted with two

rounds of risk-off flows, provoked by the Senate's vote and Beijing's ire

respectively. Any material retaliation from China is yet to come, while

participants continue to weigh implications for the ongoing trade talks. The

aforementioned legislative & diplomatic goings-on overshadowed the latest LPR

fixing from the PBoC, which saw 1- and 5-year rates trimmed by 5bp apiece.

- Resultant risk-off bias was reflected across G10 FX space, with safe havens

outperforming their high-beta peers. A significantly narrower than exp. Japanese

trade surplus and comments from RBNZ Asst Gov Hawkesby came and went.

- Aided by the HK/U.S./China developments, USD/CNH neared its 100-DMA.

- German PPI, Canadian CPI and the minutes from the most recent FOMC MonPol

meeting take focus from here. The ECB & Riksbank will publish their Financial

Stability Reports, while ECB's Lane, Rehn and Makhlouf will speak.