GBP In Eye of the Brexit Storm

Sterling is underperforming in early European hours, with GBP/USD holding just above Tuesday's lows. Brexit headline risk remains the key driver. After starting the session well, GBP weakness followed comments from EU's Barnier, who warned that while talks are intensive and round-the-clock, it remains too close to call whether a deal will be achievable.

At the top of end of the table, AUD and NZD outperform as commodities continue to inch higher, catching up with industrial metals as iron ore and copper hold recent gains.

Equities trade mixed, with UK's FTSE-100 and Spain's IBEX-35 higher, while other continental stocks have slipped into the red. US futures remain within striking distance of alltime highs, keeping JPY on the backfoot so far Wednesday.

Focus turns to US ADP employment change and another appearance from Fed's Powell in front of lawmakers in the House. Fed's Williams and BoE's Haskel are also due.