Havens recover as 'phase one'......>

EMERGING MARKETS: Havens recover as 'phase one' deal hopes retreat

-After a furtively risk-on European session, markets reversed course into the

close as CNBC sources reported that Beijing are becoming more pessimistic over

the prospects of a near-term phase one deal, raising the likelihood of another

delay. USD/JPY responded by retreating from the day's highs, falling well back

below the Y109 handle. Similar price action was seen in AUD/USD, but the losses

were slightly more limited.

-A major bump higher in the betting odds for a Conservative majority government

over the weekend was behind the edging higher of GBP throughout the Monday

session. GBP/USD cleared resistance on the way up to $1.2985, narrowing the gap

with the $1.30 handle. Betting markets now see a 67.8% chance of Boris Johnson

securing a majority, up from around 60% just a few days ago - increasing the

chances of the passage of his Brexit deal when Parliament returns.

-US housing starts and building permits are the data highlights of a quiet

Tuesday session. RBA minutes and speeches from Fed's Williams and BoC's Wilkins

are also due.