UK economy shrinks for first time since.......>

FOREX: UK economy shrinks for first time since 2012

- Soft UK GDP data added to sterling woes with a move to fresh ytd lows of

$1.2056. This was the first quarterly contraction since 2012 with sharp falls

seen in the manufacturing sector.

- JPY sits top of the pile which saw risk once again take a hit through the US

morning. President Trump trade tweets was the catalyst which saw US equities

dump. USDJPY triggered stops through 105.50 on the move to multi-month lows,

while USDCNH traded back through Cnh7.10.

- USDCAD spiked to C$1.3274 after a big miss in Canadian employment data (-24.2k

vs median +15.0k), but was quick to fade the move following a stronger wage

component and firmer oil prices.

- EURSEK stalled ahead of former trendline support-turned-resistance with the

retracement basing around the 50% fibo level of the May-Jul fall.

- Despite Italian Politics front and centre once again, EURUSD remained locked

in narrow range trade, holding either side of the $1.12 handle.