Sterling spiked as market eyes prolonged......>

FOREX: Sterling spiked as market eyes prolonged "slow Brexit"

-UK PM May had a new catchphrase in the Commons today, warning lawmakers of a

"Slow Brexit" that could infuriate voters. Markets welcomed the prolonged

political instability by selling off all the early gains for GBP/USD, pressing

prices comfortably back below the $1.32 mark. Friday's lows remain in tact for

now at $1.3082 and MPs vote this evening on whether to hold 'indicative votes'

later in the week to attempt to break the Brexit deadlock. GBP was the weakest

currency in G10 Monday.

-USD generally fell, with the USD index slipping back below the 100-dma as

still-low US bond yields pulled the rug out from under the greenback. Sharper

losses, however, were stalled by continued weakness in equities, although JPY

remained on the backfoot following firm gains Friday.

-New Zealand trade balance, US housing starts, building permits and March

consumer confidence are the data highlights Tuesday and Fed's Rosengren, Harker,

Evans and Daly are all due to speak. In Europe, BoE's Broadbent and ECB's Makuch

are also on the docket.