Sterling skyrocketed as UK exit polls hit.....>

FOREX: Sterling skyrocketed as UK exit polls hit the wires, indicating that the

Conservatives are on course to win 368 seats in the House of Commons and secure

a comfortable majority amid a slump in Labour support. Early seat declaration

has seen the Tories make serious inroads into historic Labour heartlands. Cable

printed fresh YtD highs, briefly showing above the $1.3500 mark for the first

time since 2018. EUR/GBP tumbled to worst levels since Jul 2016.

- A broader risk-on reaction to UK exit polls has been aggravated by an earlier

BBG report stating that U.S. Pres Trump has signed off on a phase-one trade pact

with China, which allows to avert the planned Dec 15 tariff hike. Markets have

welcomed the news, with participants dumping safe havens. High-beta FX are bid.

- Positive risk appetite has sent KRW soaring. USD/KRW has sold off sharply,

breaching its 50- and 200-DMAs in the process. Onshore yuan has also picked up a

bid at the open even as CNH has softened, unwinding some of its earlier gains.

The PBoC fix was roughly in line with estimates.

- Japanese industrial output (f) & U.S. retail sales are on today's data docket.

Fed's Williams and ECB's de Guindos, Villeroy & Holzmann are set to speak.