FX Update: Brexit tunnel vision, AUD eyes jobs data
Sterling strength extended further yesterday and the options market is even skewed more to the risk of greater sterling upside. This morning we get word that last-ditch negotiations apparently being held up by the Northern Irish DUP. Elsewhere, AUD is weak ahead of important jobs report as RBA policy is nearing the effective zero bound.
Hong Kong Unrest Sours Positivity in Asian Equities
A lack of clarity on Brexit and trade negotiations is keeping a cap on positive sentiment, despite the strong lead from Wall Street, Asian equities are retracing earlier gains. Sentiment has been dented by reports China will retaliate if US Congress passes the HK Bill supporting protesters in Hong Kong.
FX Chart Highlights: NZD weakness awaits confirmation, EURUSD dives
The kiwi is in a steep retreat here, awaiting the green light for further weakness from New Zealand CPI data later today. Elsewhere, the USD is generally bid and EURUSD has retreated intraday below the tactical 1.1000 pivot, possibly setting up further weakness on a weak close today.