Stellar Sterling session as GBP/USD tops......>

FOREX: Stellar Sterling session as GBP/USD tops 200-dma

-For the first time since mid-May last year, GBP/USD traded above the $1.3069

mark, helping trigger a protracted spell of USD weakness which was sustained as

global equities retreated. This extends the rally from the year's lows of

$1.2441 to over 5%. There was little news or data behind the move, with markets

continuing to bake in expectations of a softer Brexit as opposition to PM May's

deal fades further.

-JPY confirmed its place at the bottom of the G10 table having underperformed

from the off as the Bank of Japan downgraded its inflation outlook. This comes

despite a late day rally against the USD, keeping the price either side of

Y109.50. The USD generally fell, with the DXY sitting below the 100-dma ahead of

the close.

-Attention turns to prelim January PMI numbers from France, Germany, Australia,

the US and the Eurozone as well as the ECB rate decision and subsequent press

conference. US weekly jobless claims, RBNZ's sectoral inflation gauge and a

speech from BoJ's Kuroda at Davos.