Early exit polls in the UK predicted a........>

FOREX: Early exit polls in the UK predicted a strong Conservative win which

spiked sterling higher in opening Asian trade, cable touched $1.3514(19-month

high) whilst EUR/GBP traded to a low of Gbp0.8277(lowest since July 2016).

Market was seen long sterling through the election, despite Thursday's squeeze,

and profit take sales provided strong headwinds above $1.35 which pressed

sterling lower in Europe.

- Election news moved the sentiment needle further for risk-on, BBG having

reported that U.S. Pres Trump had signed off on a phase-one trade pact with

China, averting the Dec 15 tariff hike from taking effect. Participants dumped

safe haven currencies, turned to high-beta FX instead. JPY was the worst G10

performer, edged to Y109.66 in early Europe while AUD/USD managed to print a new

five-month high of $0.6939. CHF, lost ground in Asia on the risk move but

reversed sharply in early Europe in a USD/CHF led move, the EUR/USD rebound and

Fed balance sheet expansion over year-end suggested driver.

- U.S. Retail Sales are on today's data docket. Fed's Williams and ECB's de

Guindos set to speak.