USD hits 3-month low on stubbornly strong.....>

FOREX: USD hits 3-month low on stubbornly strong equities

- The USD was the poorest performer across G10 Monday, with resilient equity

markets helped fuel risk appetite to the detriment of the greenback. EUR/USD was

a beneficiary, but the pair was dragged off the afternoon highs on MNI source

reports that a PEPP top-up at Thursday's ECB meeting is too soon for many

members of the governing council.

- USD/CNH bounced off the day's lowest levels as Bloomberg reported that some

Chinese state-owned commodities traders had received orders to stop imports of

US farm goods including soybeans as Sino-US tensions ratcheted higher. USD/CNH

remained at the lower-end of the recent range, however.

- GBP was well bid into the European close, with price reminiscent of a short

squeeze helping boost GBP/USD back above $1.2450 to hit multi-week highs and

narrow the gap with the 100-dma at $1.2578.

- South Korean GDP, UK money supply data and the RBA rate decision are all due

Tuesday. The RBA are seen maintaining policy rates at Tuesday's meeting, with

focus turning to any mention of negative rates that could accompany the release.