Brexit headlines dominated early on, as the...>

FOREX: Brexit headlines dominated early on, as the Times reported that "senior

EU figures have indicated that they are prepared to offer Theresa May an

independent mechanism by which Britain could end a temporary customs agreement

with the bloc." GBP is trading with more trepidation towards Brexit news flow at

present, given recent reports & subsequent denials, cable last 5 pips higher at

$1.3045, back from highs of $1.3068. UK PM May will chair a cabinet meeting Tues

& try to force Brexiteers to drop their hard line stance, according to the FT.

- Elsewhere, the RBA left its cash rate unch. as exp. The Bank modestly upgraded

its GDP growth exp. for '18 & '19, while it trimmed its longer run unemp. exp.

following the latest labour mkt report. This was seemingly negated by the

CPI/wage outlook, with inflation to "be a bit higher" than 2.25% in '20, wage

growth still seen as gradual. AUD/USD unchanged on the release.

- Chinese VP Wang noted that China is willing to sit down with the U.S. re:

trade, little reaction was observed in FX.

- Focus Tuesday turns to the U.S. Mid-terms, with results due from Wednesday

morning (UK time), while various addresses from ECB members add to event risk.