EUR sinks as Rehn raises hopes for............>

FOREX: EUR sinks as Rehn raises hopes for September policy package

-EUR sank and underperformed throughout US hours as ECB's Rehn, in a WSJ

interview, talked up the prospects of a "significant, impactful stimulus

package", stating that it's better to overshoot than undershoot on stimulus.

This put the single currency at the bottom of the G10 table, allowing bears to

re-target early August lows at $1.1027.

-GBP traded well Thursday, rallying back above the $1.21 handle and pressing

EUR/GBP back below Gbp0.92 as retail sales beat expectations. The monthly figure

managed to notch out growth in retail sales against forecasts of a decline, with

online retail promotions helping smooth activity. This, allied with reports that

UK lawmakers are set for a parliamentary battle for/against a disruptive No Deal

Brexit, helped put GBP at the top of the pile Thursday.

-A better set of US retail sales underpinned another rise in the DXY, which rose

for a third consecutive session.

-Eurozone trade balance, US housing starts/building permits and August Uni. of

Michigan sentiment data are Friday's calendar highlights.