Sterling surges on Article 50 headlines.......>

FOREX: Sterling surges on Article 50 headlines

-After a relatively quiet start to the European session, GBP rallied sharply on

headlines crossing citing an adviser to the EU's Court of Justice who stated

that it's his opinion that the UK could unilaterally withdraw their notice of

Article 50, the piece of legislation the UK triggered to start the clock on

leaving the EU. While the final judgement of the court is yet to be handed down,

GBP crosses have rallied on hopes that this could strengthen the UK's hand in

negotiations, or even stop the progress of Brexit itself. GBP/USD's rally topped

out at $1.2840 initially, with better-than-expected Construction PMI data also

lending a helping hand.

-A pullback in equity markets has helped underpin the JPY so far today, but a

broader risk-off move across currencies hasn't been forthcoming. ZAR and NOK

both perform well on domestic data, with South African GDP and Norway's Norges

Bank output survey both better than expected.

-The data calendar is light, with attention turning to speeches from Fed's

Williams in New York and BoE's Vlieghe in Plymouth, UK.