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Market Sentiment Provides Key Driver


Japan Oct Household Spending Down 0.6% y/y


Incrementally Firmer Early On


Kiwi Kept In Check Despite Risk-On Impulse


(Z1) Strong Weekly Close

MNI (London)
CABLE: Brexit concerns, along with release of slightly weaker than forecast UK
Retail Sales data Friday, acted to weigh on sterling Friday, which along with a
generally stronger USD acted to press cable from an early high of $1.2993 to a
late NY low of $1.2857. Short term spec sterling longs were also trimmed into
the weekend. Thin conditions in early Asia saw rate push up to $1.2900(BBG data)
before it fell back to $1.2858 ahead of Tokyo. Rate extended low to $1.2848
after the Tokyo open then recovered slowly through the balance of the session to
$1.2877 into Europe. Weekend
news flow suggested no substantial progress coming out of cross-party talks re:
Brexit. Reports suggest UK PM May will try to renegotiate the Irish backstop
clause of her deal, with some saying she may want to amend the Good Friday
Agreement. Meanwhile, EU gov'ts are reportedly divided over how long the UK
could delay Brexit, while Germany Merkel said responsibility for an orderly
Brexit does not lie solely with PM May. As a reminder, Monday will see May
presenting her "plan B" to lawmakers(next vote Jan29), amidst doubts that she
will reveal any notable deviations from the original plan.
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |