Sterling scrambles as EU inch closer to.......>

FOREX: Sterling scrambles as EU inch closer to concessions - apparently

-After taking a drubbing for much of the trading day, GBP burst higher after the

London close as Bloomberg reported that the EU would be willing to consider a

time limit on the Irish backstop as part of any Brexit deal - according to

sources. Such a move would be a major concession and could help PM Johnson

garner more votes in Parliament on any withdrawal arrangement. GBP/USD surged

back above the $1.2300 level after edging below the 50-dma, defying the risk of

a bearish breakout given the recent sell-off.

-The greenback took a sharp knock after originally outperforming as ISM

Manufacturing fell well below forecast. The employment component was

particularly weak, dropping to a three-year low ahead of the Nonfarm Payrolls

report this Friday. Risk-off moves followed in FX, prompting USD/JPY to fall to

a fresh weekly low of Y107.63.

-UK Construction PMI and US ADP Employment Change are the data highlights

Wednesday. Speeches are also due from Barkin, Harker and Williams of the Fed and

ECB's Villeroy.