USD recovered earlier losses, which had.......>

FOREX: USD recovered earlier losses, which had seen EUR/USD extend its recovery

off its initial NFP react lows Friday of $1.1129 to an early Europe high of

$1.1175 seen ahead of Spain Mfg PMI release. weaker than expected data saw rate

drop back to $1.1149 but managed to recover to $1.1170 into NY. The push higher

in UST yields reversed this move and pressed EUR/USD down to $1.1140 through the

1600BST fix. USD/JPY edged higher through the European morning and continued in

NY, the rate extending its recovery off Friday lows of Y107.89 to Y108.62 into

Monday's London close(Y108.75 61.8% Y109.29-107.89).

 - Cable lost ground in tandem with EUR/USD, as EUR/GBP continued to hold around

its 10-dma (current Gbp0.8633), finding support into $1.2900(level holds strike

of an expiring option for Tuesday's NY cut - Gbp1.47bln of which Gbp1.28bln are

GBP calls) and expected to keep rate anchored. Brexit/Election developments

though remain key drivers for sterling.

- Tuesday, China Caixin Svcs PMI at 0145GMT, RBC rate decision at 0330GMT(no

change widely expected), Riksbank Minutes 0830GMT and UK Svcs PMI at 0930GMT.

ECB Villeroy speaks at 0900GMT.