Looming Supreme Court judgement escalates.....>

FOREX: Looming Supreme Court judgement escalates GBP risk

-Ranges are tight and volumes thin so far Tuesday, with little news overnight

stemming price action across the board. This keeps focus on the looming UK

Supreme Court judgement at 1030BST/0530ET, at which the UK's most senior judges

will rule whether or not the government were in breach of the law when they

suspended parliament earlier this month.

-In response, GBP overnight vols are somewhat elevated, but the general

consensus sees few long term ramifications for the currency regardless of the

outcome today. Markets are split on which way the judgement will fall, but the

PM has pledged not to resign even if the ruling goes against him.

-EUR underperformed from the off, but has pulled back a modicum of strength as

Germany's IFO release proved supportive. Business climate and current assessment

beat expectations, countering a weaker expectations component.

-The data schedule is quiet Tuesday, with just US Richmond Fed and consumer

confidence due. RBA governor Lowe, ECB's de Guindos and de Cos are also on the

docket.