Risk appetite was buoyant in today's..........>

FOREX: Risk appetite was buoyant in today's Asia-Pac session, after WSJ & BBG

reported that the U.S. and China are nearing a trade deal, lending support to

AUD, NZD & CNH. Despite subsequently easing off of best levels (with AUD weighed

on by softer than exp. Q4 GDP partials), the trio bounced after Chinese National

People's Congress' spokesman Zhang noted a "substantial progress" in trade talks

with the U.S.

- JPY underperformed amidst the aforementioned risk-on flows, with the Nikkei

225 adding ~1.1%. BoJ Gov Kuroda spoke, but offered little new re: MonPol.

- GBP remained strong throughout the session, following weekend reports that

some eurosceptic Tories may support PM May's Brexit deal, if language around the

Irish backstop clause turns stronger. The Telegraph reported that UK AG Cox "has

abandoned attempts to secure a hard time-limit or unilateral exit mechanism from

the Irish backstop."

- USD was pressured by weekend comments from U.S. Pres Trump, who said that the

greenback is too strong and lamented FOMC policy under Powell.

- Focus on a ltd Monday turns to any developments at China's annual 2 sessions.