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TYF2 132.00 Calls Still Being Lifted

FOREX

USD Pares Early Losses, JPY Struggles

CHINA PRESS

PBOC May Boost Liquidity to Meet Yearend Need: Daily

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

EMERGING MARKETS
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.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com