UK Government wins meaningful vote - GBPUSD...>

FOREX: UK Government wins meaningful vote

- GBPUSD was the biggest mover throughout a very quiet NY session. The

government's meaningful vote victory (319 to 303) over the rebels saw GBPUSD

climb 40 pips to $1.3216, before fading. The vote limits parliament's ability to

direct PM May's negotiations with the EU. EURGBP moved back under the 100-dma to

Gbp0.8768.

- ECB Nowotny remarks that he sees the EUR depreciating against the USD did

pressure EURUSD to $1.1537 in the European morning, but the firmer EUR theme

spilled over into NY and touched recovery highs of $1.1600.

- Firmer UST yields/equities lifted USDJPY to challenge the 200-dma, a close and

hold above is required for the next leg higher.

- Commodity based currency pairs continued defensive. NZDUSD briefly traded

through long term ascending trendline support to $0.6864. AUDUSD printed

$0.7369, USDCAD touched fresh YTD highs of C$1.3311.

- A slew of central bank meetings tomorrow kicks off with the SNB at 0730GMT,

Norges Bank at 0800GMT, followed by the BoE at 1100GMT.