Asia update: Battle of the deals

Brexit 

The battle of the deals for headline space tilted significantly in favour of the Brexit agreement the past 24 hours. And before the expected onslaught of headlines, the latest indication is that the main sticking point now is on the treatment of VAT in Northern Ireland. Later today EU-27 ministers will meet to discuss broad EU matters, but they will also give their approval of any Brexit deal negotiators have reached (it's the first agenda point) But my sources at the banks tell me the timings are very unclear

Asia update

The focus has been all about the Aussie

With the RBA having tipped its focus on both CPI and employment, today's better than expected data should provide some relief and potentially push out the timing of additional rate cuts. It should generally be AUD bullish, especially against NZD. 

Are you a believer in the long Euro trade?

A strong case is building that now could be as good a time as any to start legging into the long EUR trade - well in my circle anyway. In the face of downtrodden US economic data and the increasing likelihood of a speedier series Fed cuts against the ECB who have little left in the policy tank, on the surface narrowing differentials should support EURUSD. I that case, traders will then look for downside momentum in US 2's. for clues.

But Corporates and Investors, however, continue to view buying Euro forward with absolute horror in their eyes

And while long USDJPY is by far the preferred speculative trade de jour. However, with a little push from the fiscal side, there’s a strong argument to be made for a subsequent bottoming of EU sentiment gauges suggesting the Euro might continue to probe higher as we near the October Fed decisions and possibly beyond.