Sterling underperforms its G10 peers in.......>

CABLE: Sterling underperforms its G10 peers in early Asia-Pac trade, as Brexit

news flow from over the weekend weighs on the currency. As a reminder, the UK

House of Commons is heading towards a key Brexit vote, scheduled for Tues, with

many expecting the gov't to suffer another defeat. Cable last sits at $1.2984,

31 pips worse off on the day. Worth mentioning that UK Foreign Sec Hunt warned

that rejecting PM May's deal on Tues might prevent Brexit from happening at all.

Elsewhere, the Telegraph reported that the EU might increase the UK's divorce

payment, if the country decides to ask for an extension to Art. 50.

- Cable finished 70 pips worse off Friday, as London and Brussels failed to make

progress in their talks on a divorce agreement, with EU chief negotiator

Barnier's proposal re: altering the Irish backstop promptly rejected.

- Initial support noted at $1.2986, which represents the 200-DMA. Below here

opens the 50-DMA at $1.2970. Conversely, bulls eye the Feb 20 low of $1.3012,

followed by the lower 1.0% 10-DMA envelope at $1.3043.

- UK focus turns to remarks from BoE's Haskel due Mon; industrial/m'fing

production & trade bal hit on Tues, but may be overshadowed by the Brexit vote.