Flextension confirmed -After a subdued........>

FOREX: Flextension confirmed

-After a subdued Asia-Pac session, price action picked up across the European

morning as GBP held a modest bidtone on expectations that a Brexit extension

agreement would be struck today by the EU27. The EU President Donald Tusk then

duly confirmed the 'flextension' until Jan 31 2020, giving the UK government the

option to seal a Brexit deal and leave the EU earlier than the end of January

next year. GBP/USD remains higher at the NY crossover, but the pair was unable

to sustain gains above $1.2850.

-China's confirmation that the 'phase one' deal has been largely completed

helped support risk somewhat, resulting in a firmer AUD in early trade (although

this sentiment failed to translate into a firmer CNH).

-The global data & event docket is thin today, with just US wholesale

inventories and comments from BoE's Tenreyro. Outgoing ECB Pres Draghi will make

a valedictory speech. The UK House of Commons could vote as soon as today to

confirm a pre-Christmas General Election.