After a relatively quiet European session.....>

FOREX: After a relatively quiet European session on Tuesday, ratings agency S&P

triggered a wave of sterling sales after warning that a no deal Brexit would

result in a lengthy recession, adding that the risk of a no deal has increased

to the point where it has become a ratings consideration. GBP/USD briefly fell

through $1.2700, with markets now eyeing an attempt on the year's worst levels

of $1.2662.

- Meanwhile, the USD index continues to creep higher, registering a fresh YtD

high Tuesday. Equities continue to look fragile ahead of month-end and the

volatility may extend into Wednesday, with month-end flows and rebalancing

models kicking into action.

- AUD and NZD performed well Tuesday, rising against all others in G10, but the

recovery from recent lows looks increasingly shallow as the commodity complex

continues to weaken. AUD/USD needs to recover above $0.7160 to change this.

- Focus Wednesday turns to Australian CPI, the Bank of Japan rate decision,

Chinese official PMIs, Eurozone CPI estimates & US Chicago PMI. Speeches from

ECB's Nowotny, Hansson, Visco & Nouy are also due.