The FX space reacted to an FT headline........>

FOREX: The FX space reacted to an FT headline suggesting that the U.S. considers

dropping some tariffs on China with a round of risk-on flows, but there has been

little follow-through as the story was more caveated when read at length. The

headline pulled the rug from beneath JPY, which remains the worst G10 performer.

Meanwhile, the Antipodeans have more than erased their earlier gains ahead of

the monetary policy decision from the RBA, and also struggle for topside

momentum. The Scandies outperform in G10 FX at the margin.

- The FT headline inspired some demand for the yuan. USD/CNH yet again showed

under its 100-DMA & a key support zone, but has struggled to consolidate there.

- Today's highlights include services/composite PMI surveys from across the

globe, U.S. trade balance, EZ PPI and Riksbank Oct MonPol meeting minutes. ECB's

Villeroy, Muller and Visco, Fed's Kaplan, Barkin and Kashkari, as well as

Riksbank's Ingves will speak. Chinese Pres Xi will make an address at the

opening of a major trade expo in Shanghai.