Slow start to Asian trading Monday before.....>

FOREX: Slow start to Asian trading Monday before being awakened by reports that

the German coalition talks had collapsed following the walk out by the FDP. Eur

came under broad downside pressure, Eur/Usd dropped to $1.1722, off an early

high of $1.1822, the move taking Eur/Gbp down to Gbp0.8879 as it extended its

corrective pullback away from Friday's high of Gbp0.8954. Eur/Jpy fell to

Y131.17 from Y132. Eur recovery picked up momentum in early Europe as scenarios

were put forward to resolve the German government talks. Eur/Usd managed to

touch $1.1809, helped by a sharp corrective rally in Eur/Jpy and Eur/Gbp.

Eur/Gbp made a show back above Gbp0.89 but was trading around Gbp0.8894 late

morning. German politics and Brexit headlines take on the driving seat as US

Senate goes into recess ahead of Thursday's Thanksgiving holiday, no debate on

tax reform until Nov28. However, on that note, Senator Collins(Maine) listed

concerns she had with the Republican tax bill, Senator Johnson already saying he

couldn't back the Bill as written. With 2 senators suggesting opposition it

could make Bill passage difficult. A light data calendar for Monday, direction

to be driven by mentioned headlines and UST yields.