UK election fog started to clear -Sterling....>

FOREX: UK election fog started to clear

-Sterling had a decent session as markets anticipated a lifting of the

parliamentary fog as lawmakers looked poised to approve a pre-Christmas General

Election, with just the specific day of the vote still left to decide. GBP/USD

briefly showed above $1.29 in response, but ranges were largely contained. NOK

had an interesting session, hitting fresh record lows against the EUR. Weaker

oil markets and ongoing expectations of excess liquidity in Norway were the

culprits.

-Elsewhere, a decent bout of volatility followed a Reuters report citing a US

official who stated that the US-China 'phase one' agreement may not be signed at

November's APEC meeting as previously speculated by reports in both Chinese and

US press. On the headline, USD/JPY dipped to session lows of Y108.75, but the

losses were swiftly reversed ahead of the close.

-The data calendar really picks up Wednesday, with Australian inflation, GDP

from France and the US, ADP employment data and regional German CPIs. Rate

decisions are also due from the Bank of Canada and Federal Reserve.