Sterling Still Hinges on Brexit Sentiment

GBP's ebb and flow with Brexit sentiment extends into another week, with sterling the poorest performing currency so far in G10. The weakness has pressed GBP/USD back below the 1.32 handle, with the sell-the-rallies theme continuing as Brexit talks drag into another week. The change-up of advisors in Downing Street has failed to prop the pound, with the UK's chief negotiator Frost clarifying over the weekend that their red lines remain and there will be no change in approach.

The USD's also lower, but has recouped some lost ground ahead of NY hours. Election result controversy has showed no signs of progress, with President Trump tweeting "I WON THE ELECTION!" this weekend.

NOK, SEK and NZD are the strongest, with USD, GBP and EUR among the worst performers.

Data releases are few and far between for the rest of the Monday session, although Empire Manufacturing numbers could draw some focus. The speakers slate could be of more interest, with ECB's Lagarde, de Cos & Mersch, BoE's Haskel and Fed's Clarida & Daly all on the docket.