FX Update: A Dollar softening theme took hold during the London AM session, which saw EUR-USD and Cable post respective two-session highs at 1.1330 and 1.2938, and USD-JPY ebbed back come after printing a high at 110.61. Stock markets were near net unchanged in Europe, and S&P 500 futures were showing fractional losses, following a bullish session in Asia, which was pinned on hopes that the U.S. and China, which last week agreed to extend talks into this week, are ripe for making a deal on trade, or at least make sufficient progress for the U.S. to delay tariff hikes. Market participants are also looking to fresh dovish turns from the ECB and the Fed, the latter of which will see the minutes to the late-January FOMC meeting published this Wednesday, which, together with a busy slate of Fed speakers this week, will shed further light on what the Fed is thinking on policy, including the pace of balance sheet shrinkage. ECB's Olli Rehn and his colleague Villeroy spoke of the slowing in the Eurozone economy. The OECD also warned about the risks to the Portuguese economy despite "marked improvements," while official projections showed that Eurosceptic parties will command more than a fifth of the seats in the European Parliament following May elections. News that seven pro-EU MPs resigned from the Labour party was also in the mix today, although it doesn't look like this in an of itself will have much impact on Brexit proceedings.