Markets select to sell sterling as............>

FOREX: Markets select to sell sterling as Government ponders election date

- After failing to secure backing in the Commons for a General Election

yesterday, the government are expected to try again Tuesday and curry favour

from the opposition by dropping the Brexit withdrawal agreement entirely.

December 11th now looks like the most likely date, with SNP and LibDem

amendments seen gaining sufficient support. Markets remain happy to sell GBP

rallies at current levels, with bears initially targeting last week's lows at

$1.2789 before the 200-dma can be considered at $1.2714.

- NZD traded well for much of the Asia-Pac session after reports that the NZ

Superannuation Fund might drop the policy of hedging almost all of its foreign

investments in NZD. That said, a BBG piece suggesting that NZ Tsy sees a risk of

S&P removing positive outlook from the country's AA rating countered slightly.

NZD's strength fed well into AUD markets, with AUD/USD reclaiming the 100-dma

and extending the recent bounce.

- US consumer confidence and pending home sales are the calendar highlights of a

quiet session. ECB's de Cos is also due to speak.