Positive risk sentiment has carried over......>

FOREX: Positive risk sentiment has carried over into the Asia-Pacific session,

in the wake of yesterday's comments from U.S. Pres Trump, which revived hopes

for a positive resolution of the Sino-U.S. trade spat. As a reminder, Trump said

that he had a "very good" phone conversation with Chinese Pres Xi and the two

will hold an "extended meeting" at next week's G20 summit, which will be

preceded by sherpas' talks.

- Safe haven FX underperforms, with JPY leading losses, while the Nikkei 225 has

rallied ~1.6%. JPY has ignored the release of smaller than exp. trade deficit.

- USD/CNH has extended yesterday's losses, while USD/KRW has opened sharply

lower, as both currencies are buoyed by global trade developments.

- NZD narrowly outperforms its G10 peers after topping the pile yesterday. Wider

than exp. NZ BoP c/a surplus likely lends support ahead of tomorrow's GDP print.

- The main focus today falls on the FOMC MonPol decision, followed by a presser

with Fed Chair Powell. Data-wise, UK inflation data & Swedish unemployment will

provide attention. Also of note are the Tory leadership contest in the UK and

speeches from BoJ's Eto, ECB Pres Draghi & Riksbank Dep Gov Jansson.