Sterling Sinks on Bercow Block -The Speaker...>

FOREX: Sterling Sinks on Bercow Block

-The Speaker of the House of Commons placed a significant hurdle between the PM

May and a secured withdrawal deal Monday, as he ruled out the tabling of any

Meaningful Vote 3 without material changes to the underlying legislation. This

leaves the government with few favourable options: invoke 'prorogation' via The

Queen, seek further concessions from the EU, materially re-write the deal or

scrap the vote and seek an extension to Article 50. GBP traded heavy on the

news, dipping back below the $1.32 handle and cementing its place as worst

performer in G10 Monday.

-AUD sits at the top of the table, rising alongside JPY and CHF in a mixed

session for risk appetite. Core European equities and their US counterparts

largely gained as markets eye the Fed decision later this week, which is

expected to remain accommodative on the policy path.

-Focus turns to a speech from RBA's Kent, RBA minutes, the UK employment report,

Germany's ZEW survey and US factory orders for January. ECB's Praet is also due

to speak.