FX Update: The Dollar has been trading modestly firmer
FX Update: The Dollar has been trading modestly firmer against is major peers into the open of the London interbank market, reversing earlier weakness that was seen after yesterday's sub-forecast U.S. CPI data. EUR-USD has dipped back under 1.1600, after earlier printing a 12-day high at 1.1610, while USD-JPY has lifted to the 112.30-40 area after posting a 25-day low at 111.83 during the late New York PM session yesterday. Cable has steadied around 1.3230 after edging out a three-week high at 1.3251. The IMF, which today commenced its annual meeting in Bali (reportedly well attended), warned of slower growth in Asia as a consequence of trade protectionism, which was a sentiment also expressed by the RBA's Financial Stability Review, which concluded that trade tensions and a slowing Chinese economy could herald a global economic downturn. Singapore's MAS nonetheless tightened policy for a second time this year, encouraged by steady economic growth and despite concerns about fallout from the U.S.-China trade war. The PBoC set the USD-CNY reference rate at 6.9120, up from yesterday's 6.9098 fixing. The U.S. Treasury advised Treasury Secretary Mnuchin that China is not manipulating its currency (which will be of little political use for President Trump).