Cable's round trip was the highlight of.......>

FOREX: Cable's round trip was the highlight of Monday's session. Political

wrangling saw GBP modestly bid across the late Asia/early EU session, after

dissenting Brexit Min Davis resigned, which allowed the market to believe the

passage of a soft Brexit would be easier for PM May. This sentiment was

short-lived, as Foreign Sec Boris Johnson's resignation saw traders sell GBP/USD

from $1.3363 to $1.3190. The cross picked up later in the session after a

bullish appearance from the PM in front of Commons and clarification that Jacob

Rees-Mogg (a front runner for the Conservative leadership & hard Brexiteer)

hadn't tabled a no confidence vote in the PM and doesn't expect one. This

allowed GBP/USD to turn bid, and trade back to flat levels in late U.S. dealing.

- Price action elsewhere was restricted to commodity-tied FX, with AUD the best

performer of the day as copper, gold and oil strengthened. Improved risk

appetite also helped the move as global equities improved, pushing JPY to the

bottom of the pile.

- Tuesday's focus turns to UK production & monthly GDP data, German ZEW, ECB's

Visco/Italian EconMin Tria & ECB's Lautenschlaeger.