Extended recent rally to Gbp0.8789....>

EURO-STERLING: Extended recent rally to Gbp0.8789 only to drop down to Gbp0.8725

as markets reacted to PM May offering MP's a second referendum if her withdrawl

bill passes (expected to be put to the vote in early June). The boost to

sterling proved short lived as it dropped back allowing the cross to nudge back

to Gbp0.8770 before settling around Gbp0.8765. Comments from ERG members

suggests they will not vote for the bill, while Labour MP's have suggested it is

not enough for most of them to switch behind May. European elections Thursday

expected to make for a good show for Nigel Farage's Brexit Party, though the

main himself looks to be running into party finance and personal finance

problems. Lib Dems also attracting interest as they are seen as the safe Remain

protest vote. Cross now seen back within its 1.0% 10-dma envelope, the topside

having moved up to Gbp0.8785.