Sterling softer as Labour narrow the gap......>

FOREX: Sterling softer as Labour narrow the gap

-After an ICM poll late yesterday showed the Conservative party's lead over

Labour contracting to 7 points, further polling from Kantar this morning

repeated the pattern, raising concerns among markets of the rising likelihood of

a hung parliament. In response, GBP drifted lower against all others in G10 and

remains weak ahead of the NY crossover.

-After initially reacting positively to Chinese reports overnight that the US

and China had reached a 'broad consensus' over trade issues, equities and bond

markets have drifted since, with US futures indicating a lower open.

-AUD bumped higher following a speech from RBA governor Lowe, who appeared to

rule out any unconventional MonPol (i.e. QE) unless rates slipped to 0.25% in

Australia - which seems unlikely. AUD/USD edged up to $0.6795, but was unable to

top the $0.68 handle or trouble the 50-dma.

-US trade balance, new home sales and consumer confidence data are the data

highlights for the rest of the Tuesday session. Speeches are scheduled from

Fed's Brainard later today, speaking on the Fed's policy framework review.