Sterling rollercoaster sees GBP/USD take a....>

FOREX: Sterling rollercoaster sees GBP/USD take a 500 pip ride

-After starting the session as the best performer in G10, GBP folded halfway

through the European trading day as the UK government's top legal adviser shot

down May's revised withdrawal agreement, commenting that "the legal risk remains

unchanged" that the UK could be stuck in the Irish backstop protocol. Markets

took the news to mean that it's unlikely the deal will get the thumbs up in

parliament later today, keeping the risk of a disruptive 'No Deal' Brexit on the

table. GBP/USD sank sharply, finding support just above the $1.30 handle after

touching $1.3289 in Asia-Pac trade. Attention turns to the vote itself at around

1900GMT, with the latest reports suggesting a defeat for the government could

see May withdraw the 2nd and 3rd planned votes completely.

-Elsewhere, modestly positive risk appetite saw gains for NZD and EUR at the

expense of the JPY and USD as US equities (ex-Dow, dragged by Boeing) posted

decent gains.

-Japanese & US PPI are due Wednesday alongside US durable goods orders and a

speech from ECB's Coeure.