GBP has best session of 2019 as Govnt lays....>

FOREX: GBP has best session of 2019 as Govnt lays out path to prevent No Deal

-GBP rose sharply against all others in G10 Tuesday as UK PM May laid out a

clear procedure for lawmakers to vote against a disruptive 'No Deal' Brexit.

GBP/USD rallied firmly through the January highs, with bulls setting sights on

September's best levels at $1.3298. May's move to allow lawmakers to vote

against leaving the EU without a deal has raised the market's expectations of

either a soft Brexit or a delay to Brexit itself. Moving in tandem, EUR/GBP fell

to the lowest levels since mid-2017.

-After a somewhat euphoric session for equities Monday, risk retreated

throughout the Tuesday session, helping drag USD/JPY back below the Y111 mark,

with a terrible set of US Housing Starts numbers (-11.2% vs. Exp. -0.1%) also

denting sentiment. The USD index corrected back below the 50-dma at 96.281 and a

close below would bet be the first since Feb5.

-US and NZ trade balance data are due as well as speeches from BoJ's Kataoka,

ECB's Weidmann and Coeure. Fed's Powell testifies for a second day.