EUR/GBP hit a low of GBP0.8730 in.....>

EURO-STERLING: EUR/GBP hit a low of GBP0.8730 in early indicative trade today,

reacting to the Sunday Times report suggesting that PM May has "secured private

concessions from Brussels" intended to win parliamentary support for a Brexit

deal. However, a spokesperson for Number 10 played down the initial enthusiasm

over the weekend.

- Meanwhile, the Guardian quoted senior EU officials, saying chances of striking

a deal are "50-50", while Brexit Minister Raab allegedly demanded that the UK

could withdraw from the EU's Irish backstop after just 3 months, according to

the Telegraph, which triggered a new wave of uncertainty, pulling GBP away from

highs.

- EUR/GBP last deals 10 or so pips softer at GBP0.8768. Bears need a break below

the October 10 low of GBP08.8723, while bulls initially look for a move back

above GBP0.8800, followed by the November 01 high at GBP0.8832.

- UK Services PMI provides the highlight of the regional economic docket today,

with ECB's de Guindos also due to speak. Focus will of course remain on any

Brexit related comments.