Sterling stages fragile recovery as market....>

FOREX: Sterling stages fragile recovery as market contemplates next steps

-GBP trades higher against all others early Wednesday as the currency recovers

from its sharp decline ahead of (and following) the key Brexit votes in

parliament. Further votes are due to be held this evening at around 1900GMT,

firstly on whether parliament should pursue a 'No Deal' Brexit (very unlikely to

pass) and secondly on whether the UK should seek an extension to Article 50,

effectively delaying Brexit for an unspecified period (much more likely to

pass). GBP/USD had trouble adding to gains above $1.3150, keeping yesterday's

highs of $1.3289 well out of reach for now.

-Elsewhere, risk appetite soured somewhat overnight, placing AUD and NZD under

pressure from the off as Australian Westpac consumer confidence sank sharply.

Mixed equity markets (US index futures indicate a mixed open later today)

haven't helped, keeping USD/JPY well within its recent range. EUR/USD holds very

close to a large E1.9bln option expiry rolling off at $1.1295-00 at today's cut.

-US February PPI and January durable goods orders take focus from here, with a

speech also due from ECB's Coeure.