Asian FX were the big movers overnight as.....>

FOREX: Asian FX were the big movers overnight as participants continued to warm

up to riskier assets again, reassured by the lack of any material retaliation by

Iran to the U.S. killing of its top military commander. KRW led gains among the

regional currencies as the recovery in sentiment was coupled with softening oil

prices. The yuan also picked up a bid, even as the PBoC fix was roughly in line

with expectations. USD/CNH tested support from the low of Aug 2 at CNH6.9499,

briefly breached in Dec, while USD/CNY printed the worst levels since early Aug.

- News flow was sparse overnight, resulting in a tepid price action across the

G10 FX space. AUD was limited by a weak ANZ job ads reading, with the

accompanying commentary pointing to a negative short-term impact of bushfires on

the labour mkt. JPY and CHF are heading towards the London session on a softer

note, as the fading risk-off mood sapped their strength.

- Data releases to watch today include EZ retail sales & CPI figures, trade data

from Canada & the U.S., Italian CPI as well as U.S. factory orders, ISM

non-m'fing and final durable goods orders. There are no central bank speakers of

note. UK parliament resumes after Christmas, MPs will debate the Brexit bill.