Clouds of uncertainty around the Sino-U.S.....>

FOREX: Clouds of uncertainty around the Sino-U.S. trade situation put the FX

space on risk-off mode. Amid little noteworthy in Asian news flow, the focus

remained on yesterday's reports which suggested that the signing of the

Sino-U.S. phase-one trade deal may be delayed. Safe havens appreciated at the

cost of hight-beta FX, with the Antipodeans taking the biggest hit.

- Australian trade surplus swelled more than forecast, but this failed to lend a

hand to the sinking AUD. Market reaction was limited to brief and modest

knee-jerk upticks in AUD crosses.

- Asian FX was capped by risk aversion. USD/KRW opened above yesterday's close

and failed to fill the gap as its foray under the KRW1,160.00 mark was shallow.

USD/CNH extended gains after returning onto the CNH7.0 handle yesterday.

- The BoE will deliver its monetary policy decision later today, with the MPC

widely expected to stand pat on rates. German and Norwegian industrial output

figures headline the data docket. The ECB will publish its Economic Bulletin,

while BoE's Carney, Fed's Kaplan and Riksbank's Skingsley are set to speak.