Definitely Maybe -Swirling....................>

FOREX: Definitely Maybe

-Swirling will-she-won't-she rumours surrounding PM May's possible resignation

sent GBP spiralling Wednesday, putting the currency right at the bottom of the

G10 pile. News moved fast, with suggestions she could step down by the end of

the day retraced, repeated and denied but the market now seems resigned to the

fact that she will be leaving office very soon. GBP/USD took out the $1.27

handle key Fib support at $1.2663 before bottoming out at $1.2624 and staging a

minor recovery.

-Modest risk-off flow also helped the JPY recovery some recent lost momentum,

with the USD index also moving back to unchanged after suffering ahead of the

Wall Street opening bell. Better JPY flows also worked in favour of the CHF,

with USD/CHF testing 50-dma support.

-Attention turns to prelim May PMIs from across the Eurozone, exit polls from

European parliamentary elections and German IFO data. New home sales from the US

are also due. ECB minutes and a speech from ECB's Nowotny & de Guindos are also

due.