US-China trade reprieve proves short-lived....>

FOREX: US-China trade reprieve proves short-lived for currencies

-Currency markets largely pick up where they left off on Friday in early

European trade as tentative risk positive sentiment carrying through from the

US-China trade news largely faded. Reports that the US and China are nearing a

deal on trade that could end most US tariffs initially boosted Chinese FX and

USD/JPY, but price action akin to profit-taking dominated most of the morning.

USD/JPY failed to meaningfully break above the Y112 mark, with EUR/USD edging

back below $1.1350 in tandem.

-Lower-than-expected UK construction PMI failed to deter GBP from being the top

performer Monday, with sentiment underpinned as weekend press reports continue

to suggest PM May may be having some success with winning over opposition

lawmakers to back her deal in the upcoming meaningful vote. Friday's highs

remain in tact at $1.3286.

-US Construction Spending and Eurozone PPI are the sole data releases, with the

speaker slate even quieter. Focus remains on the ECB meeting and the key nonfarm

payrolls release Friday.