Sterling sinks as Brexit still isn't over.....>

FOREX: Sterling sinks as Brexit still isn't over

-GBP is the poorest performer so far Tuesday, with GBP/USD now erasing the

entirety of the post-election gains as markets seem to come to the realisation

that Brexit - despite last week's election - really isn't over. PM Johnson's

decision to write into law that the 'transition period', in which the UK will be

out of the EU but in the customs union and single market while a FTA is

negotiated, cannot be extended beyond end-2020, raising fresh fears of a no-deal

Brexit.

-GBP/USD traded a low of $1.3156 this morning, helped by slightly

poorer-than-expected jobs/wage growth numbers, opening the $1.3051 Dec12 low and

key support.

-The EUR and USD are - just - the best performers ahead of the NY crossover, but

few flows to report as most pairs sit well within recent ranges. 

-US housing starts/building permits, industrial production and capacity

utilization numbers take focus from here. There are a handful of Fed speakers

also, with Fed's Kazimir, Kaplan and Rosengren all on the docket.