Sterling under pressure as UK government......>

FOREX: Sterling under pressure as UK government doubles down on No Deal

-UK PM Johnson is apparently preparing for negotiations with the EU to

"collapse" and is manoeuvring to shift the blame onto the European Union and the

Republic of Ireland, according to a report in The Spectator magazine. This,

twinned with the release of a tariff schedule from the government in the event

of a disruptive departure, has prompted markets to shy from GBP, pressuring

GBP/USD through the $1.2266 trendline and narrowing the gap with the $1.2256

50-dma.

-Risk appetite is more mixed elsewhere, with no clear direction for either haven

currencies or high beta FX. After underperforming yesterday, NZD has bounced

slightly and is dragging the AUD higher with it. The greenback is mildly softer

thanks to a lower and flatter US curve as equities are in modest negative

territory.

-The US PPI report and Canadian housing starts/building permits are the calendar

highlights Tuesday. Speeches from BoE's Tenreyro, ECB's Lane & de Cos and Fed's

Powell, Kashkari & Evans are all due.