GBP was, by a distance, the poorest...........>

CABLE: GBP was, by a distance, the poorest performer in G10 FX Monday, as

markets took out their frustration with PM May's 'deferral' of a meaningful vote

on Brexit out on the pound, which fell to fresh cycle lows vs. EUR & USD.

- Cable bottomed out just ahead of $1.2500 having slipped through numerous key

support levels, opening up the pair to further downside pressure ahead of

Christmas. The next steps for the government are to secure concessions from the

EU before scheduling another meaningful vote which could take place as late as

January. GBP volatility clearly here to stay as May faces fierce opposition from

both sides of the House.

- GBP/USD last $1.2563, virtually unchanged. Bears look to Monday's low of

$1.2507 as the initial level of support to test. A breach would open up the

April 10 2017 low at $1.2351. To move the outlook back to neutral, bulls need to

recover the Oct 30 low of $1.2696.

- Labour market data headlines the docket Tuesday, with Brexit matters set to

dominate for the foreseeable.