Reports that President Trump is to ask...>

DOLLAR-YEN: Reports that President Trump is to ask his cabinet to draft a

possible China trade deal after his positive phone call with President Xi,

triggered broader risk-on flows overnight. JPY underperformed and remains bottom

of the G10 pile at the European crossover. USDJPY managed to pare all of

yesterday's losses, extending the move back above Y113.00 to Y113.10. Near-term

resistance is seen at Y113.19/39 (76.4% Y113.39-112.56, Oct31 high). The 21-dma

provides downside support at Y112.57, ahead of the up trendline off Mar lows at

Y112.30. Main focus today on the US jobs report at 1230GMT. Analysts see

non-farm payrolls up by 190,000 in October after a much weaker-than-expected

rise of 134,000 in September that was partially due to effects from Hurricane

Florence. This month's data could be strongly impacted by the effects of

Hurricane Michael, which hit land on October 10 in the middle of the survey

week, so there is downside risk to forecasts. The unemployment rate is expected

to hold steady at 3.7%. Hourly earnings are forecast to rise 0.2% after solid

gains in the previous three months.