All eyes are on sterling as the PM May's......>

FOREX: All eyes are on sterling as the PM May's Brexit deal was defeated Tuesday

by an overwhelming margin of 230. Cable faded ahead of the vote and knee-jerked

upon the defeat, bottoming at $1.2670, but pared losses in the wake of the vote.

In the London evening the Commons will vote on the no-confidence motion tabled

by the Labour Party, with May's government's survival widely expected, as the

ERG wing of the Tory party & DUP Party both said they will back the PM. If her

gov't survives, May will engage in cross-party talks before going back to

Brussels for re-negotiations. GBP sits at the bottom of the G10 pile at writing.

- The yen outperforms, with its strength underpinned by weaker domestic stocks.

The Nikkei 225 trades ~1% lower at writing and U.S. equity futures are also

lower, albeit marginally. 

- AUD/USD broke below $0.7200, weighed by a soft AU Westpac consumer confidence

index, which slipped into negative territory for the first time since Nov 2017.

- Focus today turns to UK CPI, German CPI (f) & Italian industrial orders.

Elsewhere, BoE Gov Carney, Riksbank's Skingsley, ECB's Nowotny & Fed's Kashkari

will speak, while the Fed is set to release its Beige Book.