GBP the early loser as market gears for.......>

FOREX: GBP the early loser as market gears for more resignations

-By the end of this week the UK will have a new Prime Minister and markets are

welcoming likely new leader Boris Johnson by selling GBP as reports circulate

ministerial resignations will number into the double figures in protest of

Johnson's willingness to pursue a disruptive No Deal Brexit. GBP/USD edged well

back below $1.25 in early European hours and now eyes support at $1.2440 ahead

of the cycle lows at $1.2382 printed last week.

-More broadly, risk sentiment appears to have improved, with antipodean FX

gaining at the expense of JPY and CHF. AUD/USD has so far failed to break north

of the 200dma at $0.7090, with bulls needing a move above here to keep the

recent recovery alive. Equities in Europe are gaining despite a generally

negative performance in Asia-Pac markets. Hong Kong in particular underperformed

as footage circulated of further unrest and protests in the city.

-The ECB decision takes focus Thursday and the speaker slate is quiet as the Fed

have entered their pre-decision blackout period. BoJ's Kuroda is due to speak at

1600BST/1100ET.