Sterling flops as all pre-election gains......>

FOREX: Sterling flops as all pre-election gains are erased

-After surging sharply in the wake of the election results last week, GBP

crumbled Tuesday, suffering the worst session of the year as newly crowned PM

Johnson looked to enshrine the end of the Brexit transition in legislation -

thereby raising the looming spectre of a No Deal Brexit once more. UK Parliament

officially re-convened Tuesday, prompting attention to switch to the Queen's

Speech outlining the government's plans on Thursday. GBP sits comfortably at the

bottom of the G10FX pile Tuesday, falling below $1.3150 and opening a return to

$1.30 and the early December lows/50-dma.

-Despite another alltime high struck in US equities, risk appetite was less

clear in currencies, with JPY and CHF trading well at the expense of AUD, NZD.

Nonetheless, most major pairs respected the week's ranges.

-German IFO data for December, UK inflation for November and Canadian CPI

numbers are the focus Wednesday. The speaker schedule is also busy, with

speeches from ECB's Lagarde & Coeure and Fed's Brainard & Evans all on the

docket.