GBP has been on the back foot in early.....>

STERLING: GBP has been on the back foot in early dealing this week, following a

string of more combative Brexit headlines from over the weekend. EU Brexit

negotiator Barnier said that he is "strongly opposed" to UK PM May's Chequers

proposals on future trade. This comes after some suggested that Barnier struck a

more conciliatory tone last week, which had allowed GBP to rally.

- The weekend also saw comments from UK PM May, as she once again pushed back

against the idea of a second referendum, and vowed that she wouldn't surrender

her Chequers plan.

- GBP/USD last deals at $1.2925, back from the early low of $1.2894. Support is

noted at the 76.4% retracement of the move from $1.2846 to $1.3043 ($1.2892),

followed by the NY low from August 29 ($1.2846). EUR/GBP last deals at

GBP0.8975, back from the early high of GBP0.8995.

- Brexit developments will continue to headline this week, as the UK & EU pursue

their continuous negotiations. UK PMI data is due over the next 3 days, starting

with the manufacturing survey later today. On the political front it is also

worth noting that UK parliament reconvenes from its Summer recess on Tuesday.