Risk appetite in early Europe allowed.........>

FOREX: Risk appetite in early Europe allowed EUR/USD and Cable to extend recent

rallies to $1.1722 and $1.3139 respectively. Cable was knocked back to $1.3083

in reaction to UK Labour Party's Foreign Affairs Spokeswoman Thornberry comments

that said the UK Labour party to vote against the Brexit deal, which could place

pressure on PM May before Christmas. Rate bounced back to $1.3143 as Brexit

Secretary Raab reported saying that we are closing in on workable solutions to

outstanding issues in Brexit talks(Rtrs). Release of weaker than expected

headline US Retail sales weighed on the USD, took USD/JPY back to Y111.79 before

it bounced, traded to a fresh high of Y112.17 as market reacted to stronger

revisions. Corrective pullback was given an added shove to Y111.88 as market

reacted to US Trump comment that he wants about $200bn in China tariffs despite

talks. This denting to the earlier risk outlook eased EUR/USD down to $1.1642,

with pressure also seen on commodity currencies, AUD/USD knocked to a fresh low

of $0.7160.