Sino-US trade deal optimism reversed the......>

FOREX: Sino-US trade deal optimism reversed the risk off tone seen through Asia

and into early Europe with a move out of JPY leading moves. USD/JPY cleared

above Y109.30/35 with added demand emerging to take rate on to Y109.49. The move

up in UST yields helped to provide a general lift in the USD, with EUR/USD

pressed down to $1.1036 on the USD strength as well as the negative reaction in

sterling to the BOE MPC rate decision/Carney speech. The BOE kept rates

unchanged, as widely expected, but 2 MPC members voted for a cut (2 rate cuts in

2020?). Carney continued to warn on the economic outcome of Brexit, adding that

the risks to UK growth are skewed to the downside. Pressure on sterling saw

cable trade to a low of $1.2795, whilst EUR/GBP spiked to Gbp0.8657 but looks to

close back below its key 10-dma at Gbp0.8628.

- Friday: RBA Minutes due at 0030GMT. Germany Trade at 0700GMT and France IP at

0745GMT. US UofM Sentiment at 1500GMT seen as the data highlight of the day. Fed

Bostic(mon-pol) and Daly(economics of climate change) on the slate. Canada

Housing Starts, Building Permits and Employment data due along with BOC Beaudry

speaking.