Sleepy session was rudely awoken by the.......>

FOREX: Sleepy session was rudely awoken by the headline that US/China trade deal

could be delayed until December (Reuters quoting official US source). Official

also warned it was still possible 'phase one' agreement aimed at ending trade

war would not be reached, but a deal more likely than not. 

- Headline dented risk appetite, main risk reactor JPY saw decent inflows

knocked USD/JPY down to Y108.82 after holding most of day above Y109.00 (though

recent recovery not cresting recent high Y109.29). JPY move led to pressure on

EUR/USD, via EUR/JPY, taking rate down to $1.1067, failed to exert pressure on

support at $1.1064. 

- Cable tracked the move as it fell back to $1.2860(61.8%  1.2789-1.2976/$1.2859

Nov05 low), with EUR/GBP holding within recent narrow ranges.

- Thursday: AUD trade balance at 00:30GMT (not expected to be a major market

mover after RBA meet). Germany IP at 0700GMT. In focus after earlier Factory

Orders came in stronger than forecast. NOK IP also at 0700GMT. EU Commission to

release Econo mic Forecasts at 1000GMT. UK BOE rate decision at 1200GMT(no

change expected) with IR released at same time, focus on BOE Carney at 1230GMT.