Enthusiasm around Sino-U.S. trade talks.......>

FOREX: Enthusiasm around Sino-U.S. trade talks continued to cool after U.S. Pres

Trump told reporters Saturday that earlier reports re: tariff roll-back were

"incorrect" and China wants the deal more than he does. Meanwhile, violence in

Hong Kong gave another reason to shy away from riskier assets. NOK and AUD

underperformed their G10 peers. That being said, the kiwi pulled out of the

high-beta FX and landed atop the G10 pile amid pre-RBNZ positioning.

- A round of JPY purchases boosted the currency through the Tokyo fix, before it

extended gains on protracted trade war uncertainty. CHF also firmed up somewhat.

- Sterling showed some strength from the off, though in the absence of any fresh

headlines. There has been talk of participants squaring out short positions

entered after Moody's affirmed the UK's credit rating at Aa2, but changed its

outlook to negative from stable late doors on Friday.

- The U.S. observes a partial mkt closure today (cash Tsys closed, stocks open).

- The focus turns to UK GDP, trade balance & industrial output. Italy will also

report its industrial production, while Norway will publish CPI data. Meanwhile,

Fed's Rosengren, as well as ECB's Enria and Mersch will speak.