Risk appetite was tempered overnight after....>

FOREX: Risk appetite was tempered overnight after BBG sources reported a

stalemate in Sino-U.S. trade talks over IP theft issues, although sentiment

recovered as Chinese 2018 GDP met exp. at 6.6% Y/Y, while Dec industrial output

& retail sales came in firmer than exp. 

- Risk-off flows had lifted JPY to the top of the G10 leaderboard, even with

Japanese stocks trading higher, albeit off of best levels. The Antipodeans were

pressured by the aforementioned risk-off flows, with NZD leading G10 declines. A

regional NZ holiday in Wellington may have limited NZ liquidity in early trade

this week. 

- GBP struggled for any upside impetus as cross-party talks re: Brexit hosted by

PM May proved inconclusive, with the PM reportedly willing to renegotiate the

Irish backstop clause & set to present her "plan B" to lawmakers later today,

with few expecting meaningful deviations from plan A. 

- Elsewhere, the docket remains thin with the U.S. observing a market holiday.