PM May opens a window but closes a door on....>

FOREX: PM May opens a window but closes a door on 2nd referendum

-Sterling performed an impressive round trip Tuesday as PM May opened up the

possibility of UK lawmakers getting a free vote on a 2nd referendum vote. The

sting in the tail, however, was that MPs would have to approve her deal first.

GBP rallied sharply on the news, touching the week's high of $1.2813 in GBP/USD

before markets sold the entirety of the gains as the prospects for PM May's deal

passing remain bleak. Conservative and opposition lawmakers were quick to point

out this is unlikely to move the needle when votes are cast in early June.

Nonetheless, EUR/GBP looks to book its first down session in 12 at the close

Tuesday.

-JPY was offered throughout, with higher equity futures across the US and Europe

helping soothe tensions amid light newsflow out of either Washington or Beijing.

Weaker US existing home sales data did little to deter markets from bidding

USD/JPY back above the Y110.51 100-dma.

-Attention turns to Japanese trade balance, UK April inflation, Canadian retail

sales and FOMC minutes. ECB's Draghi and BoJ's Harada are also due to speak.