Modest risk-off flows came to the fore in.....>

FOREX: Modest risk-off flows came to the fore in the second half of the

Asia-Pacific trade as the Globe & Mail reported that the U.S. will proceed with

formal extradition of Huawei CFO Meng, whose December arrest in Vancouver

triggered a protracted diplomatic crisis. 

- JPY started the session on the front foot, as Japanese Nikkei 225 moved into

negative territory (last ~0.5% lower on the day), and gained traction on the

back of aforementioned risk-off theme. 

- The Antipodeans showed some initial weakness, but NZD recovered from worst

levels, leaving AUD as the sole underperformer. 

- GBP struggled for clear direction, while markets absorbed fresh Brexit

headlines. The Telegraph reported that Labour Party leader Corbyn has backed a

Commons vote that could result in a second Brexit referendum, while up to 40

gov't ministers were said to have threatened their resignations if they are

forbidden to support a backbench amendment formally blocking a no-deal Brexit. 

- Focus today turns to UK labour mkt data & German ZEW survey. Elsewhere, the

BoJ has begun its two-day monetary policy meeting, which will conclude tomorrow.