Sterling bounce sustained ahead of NY.........>

FOREX: Sterling bounce sustained ahead of NY crossover

-Following the tumult in the Houses of Parliament late yesterday, GBP is the

best performer in G10 Wednesday as short-covering and

buy-the-rumour-sell-the-fact type price action sees GBP/USD eye a recovery above

$1.29. Focus remains on the House of Commons as the opposition Labour Party have

tabled a vote of no confidence against the Prime Minister, although Theresa May

is expected to defeat the motion with little effort. The PM will now be

conducting cross-party talks in an attempt to modify the withdrawal deal in a

way that will pass muster with both UK lawmakers and the European Union. GBP's

recovery pressured EUR/GBP to multi-month lows and a close below the Gbp0.8865

200-dma would mark the first since mid-November.

-Equities are mixed, with gains in France, Spain and Italy countered by losses

in the UK and Germany, helping JPY to edge higher against most others.

-US import/export price index data and the NAHB Housing Market Index are the

calendar highlights, with speeches also due from Fed's Kashkari and ECB's

Villeroy.