Mid-morning volatility shows market...........>

FOREX: Mid-morning volatility shows market sensitivity to US-China trade

-After a quiet start to the session, a bout of mid-morning volatility courtesy

of China-US headlines further signalled market sensitivity to the fragile

relations between the two nations. China's Foreign Ministry stated that Trump

and Xi had agreed to reach "mutually beneficial agreements", helping send AUD,

NZD and CNH to fresh highs. Nonetheless, much of the move was reversed as wires

clarified that the comments were in reference to a phone call between the two

leaders on Nov1 - almost a month ago. The moves highlight the importance of the

sideline discussions due to take place at the G20 meeting later this week.

-GBP is the poorest performer in G10 as reality sets in for UK ministers -

Theresa May received almost no support in her House of Commons appearance

yesterday, further cementing the difficulty with which her withdrawal deal will

gain passage through parliament.

-Datapoints are few and far between Tuesday, with focus on US consumer

confidence numbers and speeches from Fed's Clarida, Bostic, Evans and George and

ECB's Nouy, Costa and Mersch.