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Early Asia trade was sedate, and there........>

FOREX
FOREX: Early Asia trade was sedate, and there really was only one matter driving
flows during Asia-Pacific trade; confirmation re: an October Sino-U.S.
ministerial level trade meeting, which triggered broader risk-on flow. CHF & JPY
underperformed against this backdrop, with USD/JPY trading as high as Y106.75.
AUD sits at the top of the G10 table, although a lack of follow-through above
key resistance at $0.6822, the high of Aug 8, has limited the rally thus far.
- EUR/GBP threatens to break below GBP0.9000, with GBP/USD anchored around
$1.2250 after the Commons ratified the bill that has the aim of blocking a
no-deal Brexit at the end of Oct if PM Johnson hasn't struck a deal with the EU
ahead of the deadline, while the gov't ended its opposition to the bill in the
Lords. The Commons also moved to vote down the PM's motion for a general elex.
- USD/KRW crashed back below KRW1,200 on the back of the broader risk-on flows,
while USD/CNH printed as low as CNH7.1216 before moving back above CNH7.1300.
- Participants look to Fed Chair Powell's latest address, non-m'fing ISM & ADP
emp. data out of the U.S, the Riksbank MonPol decision & German factory orders.
Elsewhere, we will hear from ECB's de Guindos, BoE's Tenreyro & BoC's Schembri.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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