All eyes were on the European Council.........>

FOREX: All eyes were on the European Council summit, as EU leaders held talks on

the bloc's joint Covid-19 fiscal response. Light risk-on flows were seen as

Denmark reportedly broke ranks with the other Frugals, but broader sentiment was

kept in check by concerns over the coronavirus situation in several locations &

the ultimate lack of agreement between EU leaders during today's session.

- USD was the best G10 performer, with DXY posting a leg higher as e-minis

dipped into negative territory. JPY was offered across the board into the Tokyo

fix and it is worth reminding that today is a Gotobi day. A surge in USD/JPY was

capped at Y107.53, which represents its 100-DMA.

- GBP softened in anticipation of today's appearance from Foreign Sec Raab, who

signalled the possibility of suspending the UK's extradition treaty with Hong

Kong, which would add further strain to Sino-UK relations. 

- USD/CNH eased off after rejecting the CNH7.0 mark. Price action was driven by

swings in risk appetite, as the redback ignored in-line LPR fixings.

- Focus moves to speeches from ECB's Lane & de Guindos and re-appointment

hearings of BoE's Tenreyro & Haldane.