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USD/JPY shows below Y110 as risk shows no.....>

FOREX
FOREX: USD/JPY shows below Y110 as risk shows no sign of recovery
-After a firmly negative close for US equity markets yesterday, the Asia-Pacific
session saw fit to press markets lower still overnight, with the Nikkei 225 down
around 1.5%. This kept JPY bid across the board, helping push USD/JPY to fresh
cycle lows and touching Y109.90, the lowest levels since late March. European
trade hasn't fared much better, with fresh signs of US-China discord stemming
from Reuters reports that China miscalculated the resolve of the Trump
administration.
-CHF played catch-up after yesterday's underperformance in which it failed to
gain any tailwind from the general risk-off environment. Markets have corrected
slightly Wednesday, placing CHF top of the G10 pile.
-GBP trades weak, erasing the firm outperformance seen Friday ahead of Prime
Minister's Questions, with Theresa May set to face further calls to announce her
departure date.
-Canadian housing starts are the data highlight, with speeches from ECB's Draghi
and Fed's Brainard also due.

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