A flurry of headlines on U.S.-China trade.....>

FOREX: A flurry of headlines on U.S.-China trade talks has moved markets to and

fro, with the FX space reacting accordingly. An SCMP source piece pointing to no

progress in deputy-level negotiations & suggesting that China's delegation may

cut its stay in the U.S. short inspired a clear risk-off reaction early into the

session. The risk-off moves pared back somewhat as the White House told CNBC

that they are unaware of any changes to Chinese VP Liu's schedule. But

subsequent tweets from Fox's Lawrence echoing speculations of no progress so far

& talks being cut short helped risk aversion prevail.

- High-beta FX remain on the back foot. For the record, NZD faced some pressure

as NZ FPI was flat vs. the prior +0.7% M/M, before U.S-China headlines hit. JPY

& CNH lead gains amid demand for safe havens. USD/CNH spiked above CNH7.1600 in

reaction to the SCMP story before fading somewhat, but remains elevated.

- Today's data highlights include U.S., Norwegian and Swedish CPIs, French and

Italian industrial outputs, as well as UK monthly economic indicators. The ECB

will publish the minutes from its most recent, contentious meeting, while

speeches are awaited from Fed's Daly, Mesters and Bostic.