Week Resumes With Bout of Risk-off -Dollar....>

FOREX: Week Resumes With Bout of Risk-off

-Dollar returned in style Monday morning, rising against most other G10FX as

markets opened with a distinct risk-off feel. Equity markets in Europe slid from

the open, following on from the negative close in the US. EUR/USD failed to find

support at $1.15, with $1.31 in GBP/USD also giving way with little trouble.

-After a dour week, Antipodean FX trades well as markets take profit on

successful shorts, allowing prices to bounce slightly. The price action remains

distinctly un-constructive, however, so traders may remain happy to sell

rallies.

-Chinese equity markets failed to benefit from the PBoC's RRR cut over the

weekend, prompting the CSI 300 to slip well over 4% and the Shanghai Composite

over 3.5%. CNY slipped sharply alongside domestic equities, bringing August

highs of Cny6.9348 well into view.

-Columbus Day holidays in the US may see volumes and liquidity dim. The data

calendar is empty, with only a speech from Fed's Bullard at 1030BST on the

slate.