Sterling the poorest performer for second.....>

FOREX: Sterling the poorest performer for second session

-GBP/USD briefly cracked the $1.24 handle Tuesday for the first time since 2017

as markets rushed to price in the increased odds of a No Deal departure of the

UK from the European Union. Sky News reported that frontrunner to be Prime

Minister Boris Johnson would be willing to suspend Parliament in October in

order to prevent ministers from blocking a disorderly exit from the EU. GBP/USD

showed below the handle to touch $1.2397 in response, helping EUR/GBP to rally

to the best levels since January.

-The Greenback was comfortably the best performer Tuesday, receiving some decent

yield support as US retail sales firmly beat expectations. The better data

bumped the Atlanta Fed's GDPNOW model to see 1.6% growth in Q2 vs. 1.4%

previously. Nonetheless, markets still eye action from the Fed in June, with CME

Fedwatch seeing a 30% of 50bps cut in two weeks.

-Attention turns to the G7 finance ministers summit in Chantilly, France

beginning Wednesday and a speech from Fed's George. UK, Canadian and Eurozone

inflation data is due alongside US housing starts.