GBP has been the underperformer among the.....>

FOREX: GBP has been the underperformer among the majors in early dealing this

week, on the back of the latest developments re: Brexit. Discussions between UK

Brexit Sec. Raab & the EU chief negotiator Barnier took place on Sunday, which

ultimately failed to break the current deadlock in negotiations. Talks have

reportedly been suspended until Wednesday's EU Summit dinner, with Barnier

noting that "despite intense efforts, some key issues are still open, including

the backstop to avoid a hard Irish border."

- JPY strength has also been evident, supported by the broader risk off tone

emanating from simmering U.S.-Saudi tensions. 

- Elsewhere the USD has experienced some modest outperformance vs. most of its

major peers, with the EUR pressured by the Italian budget situation & the latest

German regional election in the state of Bavaria.

- NOK has benefitted from the uptick in oil prices.

- Highlights today include U.S. retail sales, Italy submitting its budget to the

EU, the BoC quarterly business survey & an address from ECB's de Guindos.