The DXY moved lower on Monday but finished....>

FOREX: The DXY moved lower on Monday but finished off of worst levels with trade

rhetoric continuing to dominate the headlines.

- GBP outperformed on Monday as UK & EU reached a broad Brexit transition

agreement through to the end of '20, with an Irish backstop arrangement to be

put in place. The DUP Party said the agreement gave them no cause for concern.

Cable finished of off best levels after 1.4100 capped.

- EUR drew support from an ECB sources piece stating that policymakers are

shifting debate to the expected path of rates as some of the most dovish members

accept that bond buys should end this year. Elsewhere ECB's Mersch stated that

the EZ economic recovery is doing better than expected, noting that "with the

improving course of inflation we can gradually reduce net bond purchases."

- Canadian rhetoric re: the prospect of a NAFTA deal was upbeat, as officials

stressed that all 3 parties were working towards a deal. USDCAD moved lower as a

result, but buyers stepped in around 1.3050. 106.30 capped USDJPY. AUD & NZD are

off of Monday's lows but trade in familiar territory. Risk events in Asia

include RBA Mins, comments from RBA's Bullock & Aussie House Price Index