The thematic in the forex arena has swiftly transitioned from the US-Iranian crisis, which had led to an injection of risk off flows, to a more benign landscape, dominated by a sense that the global stabilization thesis into 2020 is still panning out. The European block (EUR, GBP, CHF) led the charge higher after ‘across the board’ improvements in EZ/UK services PMIs, with further backing by the notable jump in German retail sales and the EZ sentix investor confidence. The recovery in risk appetite trumped the upward trajectory of the Yen, by far the worst performing currency as the week gets underway. The Aussie is not showing signs of life so far after the China services PMIs from Caixin / Markit came at a disappointing, but most importantly, the market pricing for a February rate cut by the RBA has gone up marginally as the ramifications of the bush fires for the overall economic activity in the country play out. The Kiwi was largely unchanged for the day, with no drivers to take note of. The USD traded on the weak side despite still being one of the best performers this year, while the CAD built up on recent gains against the weakest currencies out there such as the Yen, Aussie or Kiwi.