Sterling has lagged its G10 peers from the....>

FOREX: Sterling has lagged its G10 peers from the off, in reaction to BoE

rhetoric from over the weekend. MPC member Vlieghe said that he could support an

interest-rate cut if domestic economy shows no signs of recovery, adding that he

will closely watch this month's data. Last week saw BoE Governor Carney

highlight the ample policy space available to the MPC, while another MPC member

Tenreyro suggested that she might be warming up to backing monetary easing.

- Elsewhere in G10, the Antipodeans lead gains and safe havens struggle. A

market holiday in Japan likely limits liquidity.

- The PBoC fix was a tad weaker than exp., but USD/CNH has softened. It flirts

with CNH6.9100 at typing, after touching its worst levels since Aug 2019.

- TWD printed its best levels vs. USD since June 2018, following the re-election

of pro-independence Taiwanese Pres Tsai. USD/IDR has extended losses registered

on Friday as BI said that they will allow the rupiah to strengthen. KRW is also

bid, with USD/KRW hovering ~2.5 fig. above the Jan 2 multi-month low.

- Vlieghe's comments put UK monthly activity indicators in focus today. Central

bank speaker list includes Fed's Rosengren & Bostic and Riksbank's Jansson.