Risk sentiment turned a bit sour with.........>

FOREX: Risk sentiment turned a bit sour with clouds of uncertainty ahead.

British MPs made the Brexit process brake hard on its helter skelter yesterday

as they rejected PM Johnson's hyper-speed timetable for adopting relevant

legislation. This puts the UK on course for another Brexit delay and perhaps a

general election. EU Council Pres Tusk said that he will recommend EU leaders to

give a nod for extension.

- Sterling firmed up initially but pared gains thereafter. The move was likely

nothing more than a brief corrective pullback, following yesterday's sell-off.

- Elsewhere, preference for safe havens over riskier assets crystallised through

the session with the initial round of risk-off flows seen as Japanese equities

reopened after a holiday. JPY outperformed its G10 peers as a result, mainly at

the cost of the Antipodeans. BBG spoke to traders citing AUD & NZD sales against

JPY ahead of Thursday's speech from U.S. VP Pence re: China policies.

- The economic calendar is fairly thin today, with EZ consumer confidence coming

up, which leaves the focus on risk developments. ECB's Enria will speak.