Risk sentiment soured alongside Italian.......>

FOREX: Risk sentiment soured alongside Italian assets from the get-go, with

Italy's 10yr yield rising sharply to touch the highest levels since early 2014.

Rebuttals from Brussels, a still disunited front among Italian politicians and

the extension of uncertainty surrounding the country's fiscal deficit targets

knocked risk appetite, fuelling gains for the JPY and CHF in Tuesday trade.

Despite a modest recovery ahead of the US close, EUR also slipped against most,

but was spared the brunt of the fallout.

-Both NZD and AUD continued to trim some of the gains seen across September,

keeping both currencies within striking distance of the YTD lows against the

USD. Despite still firm commodities prices, AUD and NZD remained subdued by

terse US-China trade relations. FT reports that the US could crackdown on

Chinese student visas were the latest illustration.

-UK services PMI, US ADP Employment Change and ISM non-manufacturing PMI are the

data highlights, while a litany of Fed speakers, including Powell, make up the

speaker schedule.