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USD, JPY on top despite modest equity.........>

FOREX
FOREX: USD, JPY on top despite modest equity recovery
-While the equity scorecard looks far healthier this morning than it did
yesterday (Nikkei 225 closed higher by 0.4%, Shanghai Comp up 0.3%, core Europe
up 0.3-0.4% at writing), currency markets remain in risk-off mode, prompting
traders to seek out the USD and JPY. The subsequent pressure on most major pairs
is yet to bottom out, with EUR/USD on track to test 1.14 and GBP/USD eyeing
1.29. Lacklustre Eurozone PMIs and continued nerves surrounding Brexit remain
top of mind. UK PM May meets the Conservative's 1922 committee behind closed
doors later today, meaning no press conference will follow, but leaked comments
may be forthcoming.
-SEK is comfortably the poorest performer in G10 following the Riksbank's
unchanged rate decision, as policymakers were reluctant to fully commit to a
December rate hike. EUR/SEK briefly topped the 10.3800 100-dma.
-The Bank of Canada are expected to raise rates by 25bps Wednesday, with US PMIs
and new home sales also due. Earnings from Boeing, Boston Scientific, UPS, AT&T,
Visa, Microsoft and Ford also cross today.

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