Brexit Headlines Prompt GBP Pullback -The.....>

FOREX: Brexit Headlines Prompt GBP Pullback

-The EU's tougher (and united) stance against the UK in Brexit negotiations

yesterday has translated into some mild profit-taking against the GBP today,

which sits at the bottom of the G10 pile. JPY also sits lower as the emerging

risk appetite this week continues to weigh. EUR/JPY today briefly touched the

highest level since late April.

-HKD broke away from the USD overnight, marking the largest intraday HKD/USD

rally for 15 years, despite the move only amounting to 0.6%. While the

underlying catalyst is unclear, rising local rates, looming market holidays and

a sharp short squeeze are being blamed for the move. Further fallout, so far,

has been contained.

-Eurozone PMIs were largely mixed (France fared poorer, Germany fared better)

and the EUR is generally gaining against most others.

-Attention turns to Canadian CPI and US services and manufacturing PMI numbers,

while markets in the UK watch Westminster for any response to the EU's rebuttal

in Salzburg.