Telegraph report that EU Juncker fears........>

FOREX: Telegraph report that EU Juncker fears Theresa May's Govt. could collapse

next week if Brexit negotiations remain deadlocked, and is prepared to extend

deadline to settle the Irish border dispute to the eve of the EU leaders' summit

next week, acted to weigh on sterling in opening Asian trade but failed to break

the pound out of recent ranges. Weak Australian trade data outweighed the strong

AIG construction data which pressed on the Aud which in turn acted to weigh on

other commodity currencies. Nzd/Usd broke under recent base of $0.6840 though

only to $0.6835, while Usd/Cad continued its recovery, following Wednesday's

cautious tone from the BOC, to C$1.2834 with some seeing potential for C$1.2910.

Into Europe and major pairs were seen in consolidative mode with no major news

to drive any directional impetus. US Employment Report Friday moves into view,

which normally acts to subdue trade ahead. Cable holds below $1.3400 though the

pound seeing some buoyancy from downside pressure on Eur/Gbp. Eur/Usd clings to

$1.1800, the level holding the strike of a decent sized option for today's NY

cut, E1.09bn. Jpy trades on the soft side, Jpy pairs holding just off best

levels in late morning trade.