EUR/GBP last trades at GBP0.8960, a...>

EURO-STERLING: EUR/GBP last trades at GBP0.8960, a touch higher on the day after

falling 67 pips Friday. Markets show muted reaction to the Brexit headlines from

over the weekend. UK PM May noted that the UK would be in "uncharted territory"

if MPs reject her Brexit deal & refused to rule out bringing the deal back to

Parliament multiple times, while the Independent subsequently reported that MPs

believe "parliamentary rules will prevent May bulldozing her Brexit deal through

by staging multiple repeat." 

- With the Commons reconvening after the Christmas break focus will return to

the Brexit debate. In terms of timelines, May continues to point towards a vote

on her Brexit deal at some point next week. 

- Bears look for a break below GBP0.8936, which represents the 38.2% fibo

retracement of the move from GBP0.8656 to GBP0.9108, which would open up the Dec

31 low of GBP0.8927. Conversely, bulls focus on the 21-DMA at GBP0.9001 and a

move through that level would allow them to attempt a run at Friday's high of

GBP0.9030.