Risk appetite gets a jolt on 'phase one'......>

FOREX: Risk appetite gets a jolt on 'phase one' progress

-Reports suggesting a phase one deal between the US and China could be signed as

soon as this November's APEC summit helped underpin a decent dose of risk

appetite ahead of the close, which allowed the S&P500 to trade north of the

all-time high close printed at end-July. This prompted some outperformance in

commodity-tied and high beta FX, resulting in AUD sitting at the top of the

pile.

-A healthy move higher in the US yield curve helped spur USD buying, which

prompted the first print above the 100-dma in the USD index in two weeks. The

greenback move helped USD/JPY hit the best levels of the week Friday, despite

further reports suggesting the BoJ board will stand pat on policy next week and

favour stronger signalling instead.

-The FOMC rate decision takes focus next week, with the Fed coming under

increasing pressure to trim rates for a third consecutive meeting. The Bank of

Japan and Bank of Canada are also both due. German & French CPI and MNI Chicago

PMI & October ISM data are the data highlights.