Markets continued to take the risk negative...>

FOREX: Markets continued to take the risk negative aspects out of US Trump's

speech Tuesday through Asia Wednesday and into early Europe, enabling EUR/USD to

challenge the $1.1000 level. Recent suggestions of option barrier interest here,

though most reported stronger support in place between $1.1000-1.0990, saw rate

rebound off a traded low of $1.0999, traded to a fresh intraday high of $1.1021.

- USD/JPY clung to its 200-dma(Y109.02) early Europe, having closed Tuesday's

session on it, but ventured below again ahead of NY. Traders see rate caught

within an outside range of Y108.50/109.50.

- UK CPI came in softer than forecast at 1.5%yy vs last 1.7% (median 1.6%) but

little reaction seen, sterling buoyed by polls suggesting Conservative lead.

- Main news as kiwi surged wasas the RBNZ unexpectedly leaving OCR on hold w no

sense of urgency to bring rates lower, though retaining readiness to ease if

needed. The decision was unanimous, judging that the economic developments since

August did not warrant a rate cut. The OCR profile was a little more front

loaded in MPS in terms of easing than in Aug, but trough not any lower. 

- Focus on US CPI, with Fed's Powell due to speak; Kashkari also on the slate.