Sterling took a nosedive into the Asia open...>

FOREX: Sterling took a nosedive into the Asia open as an update to the

YouGov/Times MRP election poll saw the Tory lead shrink. The closely watched

model now predicts a slimmer 28-seat Tory majority, as opposed to a 68-seat lead

forecast last month, muddying the waters ahead of Thursday's election.

- Light risk-off flows emerged as White House Trade advisor Navarro told Fox

that he has "no indication" that the Dec 15 tariffs on China might not be put on

if U.S. Pres Trump doesn't get a "great deal." Navarro is a known China hawk.

- These remarks hit NZD, sapping its earlier strength. The kiwi had earlier

briefly topped the G10 pile as NZ Treasury published its Half-Year Economic &

Fiscal Update and Budget Policy Statement. The uptick was driven by the

announcement of NZ$12bn of new fiscal spending, before accompanying cuts to NZ

growth forecasts coupled with trade war headlines came to the fore.

- That being said, AUD outperformed in the G10 basket, even as the yuan remained

limited. BBG cited traders pointing to demand for AUD/NZD.

- KRW softened on trade worries & unexp. uptick in S. Korean unemployment.

- The focus turns to FOMC MonPol decision, as well as U.S. and Swedish CPIs.