GBP slumps as problems arise beyond Brexit....>

FOREX: GBP slumps as problems arise beyond Brexit

-GBP was comfortably the worst performer Tuesday as PMI data for January

confirmed the economy at its weakest since the fallout from the Brexit

referendum. Composite PMI for the UK came in at 50.3, the lowest since the 47.6

printed in July 2016, the month immediately following the vote itself. GBP/USD

accelerated losses on the break below $1.30 to slip well below the 200-dma and

allow bears to set their sights on $1.2896, the 100-dma.

-AUD carried its strong performance throughout the European and US sessions,

although a better turn out from the USD managed to temper AUD/USD somewhat.

Further strength in US equities helped buoy the greenback, with the DJIA now up

over 17% from the December lows. This didn't help USD/JPY, however, with the

pair finding it tough to extend on gains above Y110.

-Attention turns to the State of the Union address from President Trump, German

factory orders, November US trade balance and Canadian Ivey PMI. RBA's Lowe is

due speak, with the Statement on Monetary Policy following on Friday and BoC's

Lane is also scheduled.