Risk on the front foot as markets ring in.....>

FOREX: Risk on the front foot as markets ring in 2020

-European equities and US futures sit higher after the first few hours of 2020

trade, with risk appetite getting a healthy boost from Trump's re-commitment to

signing the Phase One trade deal as well as action from the PBOC to combat the

slowing domestic economy. The US President has now committed to signing the

agreement on January 15th, and opened the door to the start of negotiations for

the next phase. Markets have read into this as a stay for another further tariff

hikes, helping boost equities. USD/JPY has also gained, but Tuesday's highs

remain in tact at Y108.89. The USD index is mildly recovering from the

multi-month lows printed at end-December.

-The PBoC's trim to the reserve requirement ratio (effective Monday) has further

underpinned sentiment. The central bank cut rates by 50bps, but the CNH shrugged

off the move, trading at the highest level since mid-December against the

greenback.

-Weekly US jobless claims and the final US manufacturing PMI read for December

are the sole releases Thursday. There are no speakers of note.