Sits back within its 1.0% 10-dma......>

EURO-STERLING: Sits back within its 1.0% 10-dma envelope, having spent most of

last week outside. Rate has extended its corrective recovery off Friday's low of

Gbp0.8618 to Gbp0.8698(Jan23 low) in current trade (saw a high Monday of

Gbp0.8695 where it met decent resistance in NY). Resistance is seen into

Gbp0.8700, a break to open a move toward Gbp0.8711 (38.2% 0.8863-0.8618) ahead

of the Jan24 high of Gbp0.8725. Support Gbp0.8680, Gbp0.8665/60. 

- Envelope parameters currently at Base Gbp0.8654, Top Gbp0.8829 (2.0% Envelope

Gbp0.8567-0.8916)

- Position adjustments have seen GBP off its recent best levels, weighed by

press reports stating that PM May wants Tory MPs to back the "Brady amendment",

which would replace the Irish backstop with "alternative arrangements", in an

attempt to forge an intra-party compromise. Aforementioned reports hit after the

EU Commission spokesperson reiterated that the Brexit deal is not open to

renegotiation. As a reminder, amendments to the deal are due to be tabled from

1900GMT Tuesday.