Opened Asia around Gbp0.8831 and......>

EURO-STERLING: Opened Asia around Gbp0.8831 and was pressed to a low of

Gbp0.8810 in reaction to Friday's announcement, following the UK Cabinet's

meeting at Chequers, which produced an agreement on PM May's Brexit plan.

However, sterling took a knock during the Asian session as the resignation of

Brexit Minister Davis announced, a junior Brexit Minister also decided to leave,

which bounced the cross to Gbp0.8849. Corrective pullbacks have so far been

supported at Gbp0.8840 as market looks to analyse the implications. The

resignations are seen bruising PM May, though this could also open the door to a

soft Brexit which would be sterling supportive. Cross now trading back above its

10-dma at Gbp0.8833 with the topside of the 1.0% envelope today coming in at

Gbp0.8921. Market will remain on Brexit watch to see if Davis' resignation

prompts other Cabinet members to follow suit. Chance actions could prompt a

General Election also in the background.