Sterling suffers as market writes down........>

FOREX: Sterling suffers as market writes down chances of a smooth transition

-With the UK government just days away from being forced to pull the trigger on

hundreds of millions of pounds worth of no deal Brexit contingency plans,

coverage over the weekend was particularly negative for the UK PM and for a

smooth Brexit transition period. As a result, GBP is comfortably the poorest

performer of the day, falling around 1% against most other FX. GBP/USD's recent

cycle low at $1.2696 is now within range.

-Concerns surrounding Brexit have been compounded by further Italy woes as the

country's deputy PM reasserted his view that the Italian government can halt any

EU budget decisions and other policies if they refuse to respect domestic

spending plans. EUR/USD spilled below $1.13 for the first time since mid-2017.

-The vague risk-off theme globally is helping lift the USD and JPY, with an

OPEC-driven recovery in oil prices also boosting the CAD and (to a lesser

extent) NOK.

-US market holidays today keep volumes and liquidity muted, with little on the

calendar to highlight other than a speech from Fed's Daly.