May's new cross-party approach to Brexit......>

FOREX: May's new cross-party approach to Brexit boosts GBP

-After a distinctly quiet European trading session, GBP (and to a lesser extent

the EUR) gained sharply as PM May outlined a new approach to Brexit including a

further delay to Brexit itself as well as an olive branch to the opposition

Labour Party to enter discussions in order to find a workable deal with a

majority in the Commons. This suggests the version of Brexit to be pursued will

be softer and more closely resemble Labour's proposals for a customs union.

GBP/USD rallied north of $1.3100 to touch session highs, but yesterday's highs

of $1.3150 remain intact for now.

-Elsewhere, currency markets were largely quiet with most major pairs lacking

firm direction. AUD held the post-RBA losses and extended weakness through the

Mar20 lows before finding some modest support ahead of the $0.7050 mark. Haven

FX gained, with JPY and CHF close to the top of the G10 table as positive EU

equities were countered by weakness in the DJIA.

-UK services PMI, Eurozone retail sales and US ADP employment change take focus

Wednesday. Fed's Bostic, George, Barkin and Kashkari are also due to speak.