Markets fly as US-China trade fervour.........>

FOREX: Markets fly as US-China trade fervour boosts risk

-After a quiet and steady morning in Europe and a relatively ineffectual ECB

rate decision and press conference, markets were provided with a decent jolt of

risk appetite shortly after the US open as reports swirled suggesting that US

negotiators had offered to cut existing tariff rates by up to 50% on $360bln of

Chinese imports, according to sources in the Wall Street Journal. Traders bought

further into the reports as Reuters confirmed that USTR's Lighthizer said

announcements were possibly 'imminent'.

- Markets responded by sending equities sharply higher along with USD/JPY, which

crested at a multi-week high of 109.32, but the most-watched move was in

USD/CNH, which plunged below the 7.00 level for the first time since early

November. The 200-dma now undercuts as support at 6.9452.

- The results of the UK election are due overnight and GBP has been retracing

throughout the day. A Conservative majority is still the most probable outcome

according to bookie's odds, but the lead shrank throughout the day. US retail

sales is the sole tier 1 data release Friday.