Sterling recovers ahead of the close as PM....>

FOREX: Sterling recovers ahead of the close as PM May sets out 'Plan B'

-It was a thin and quiet session as US markets remained closed for MLK day,

keeping both liquidity and volumes particularly light. As European mainland

equities retreated slightly, JPY was underpinned, keeping it close to the top of

the pile for much of the session. Nonetheless, USD/JPY failed to challenge the

Monday lows at any point.

-GBP was quiet for much of the day until PM May set out her Brexit Plan B which,

while unveiling little new, suggests that she expects to make progress with

Brussels in the coming weeks, thereby smoothing the passage to striking a deal

with the House of Commons. GBP/USD briefly showed back above $1.29 on the move,

but gains were limited. Commodity-tied currencies suffered throughout the

session oil and precious metals underperformed, resulting in CAD and AUD sitting

close to the bottom of the recent range.

-New Zealand Performance Services Index is the highlight of the forthcoming

Asia-Pacific session, followed by UK jobs data, German ZEW survey and US

Existing Home Sales.