Sterling flies as risk of near-term deal......>

FOREX: Sterling flies as risk of near-term deal rises

-A report in The Times suggesting the Conservative's key allies in parliament,

the Northern Irish DUP, could throw him a lifeline by softening their stance

toward the acceptance of EU rules in any Brexit deal (and potentially solve the

key Irish border issues in one fell swoop) has prompted markets to sharply

re-price the odds of a near-term deal in UK parliament, which remains prorogued.

This underpinned this morning's GBP rally, helping boost GBP/USD to the best

levels since late July and well within range of the 100-dma at $1.2516.

-Elsewhere, the EUR holds the bulk of its post-ECB gains, helping prompt new

trend highs in EUR/USD at $1.1109 and taking out channel top resistance in the

process. This has all conspired against the greenback this morning, which toward

the bottom-end of the G10 pile. Confirmation from the Chinese press that the

country are to expand their tariff exemptions (mirroring moves by the US earlier

this week) has supported risk somewhat.

-US retail sales and import/export price indices take focus from here, with

September prelim Uni. of Michigan data on the docket also.