Cable round trip the highlight of the.........>

FOREX: Cable round trip the highlight of the session

-Political wrangling saw GBP modestly bid across the late Asia/early European

session, as dissenting Brexiteers dropping out of cabinet allowed the market to

believe the passage of a soft Brexit would be easier for PM May. This sentiment

was short-lived, however, upon the resignation of Foreign Secretary (and popular

minister) Boris Johnson, which saw traders sell GBP/USD down from $1.3363 to

$1.3190. The price action picked up later in the session after a bullish

appearance from the PM in front of Commons and clarification that Jacob

Rees-Mogg (a front runner for the Conservative leadership) hadn't tabled a no

confidence vote in the PM and doesn't expect one. This allowed GBP/USD to bid

back up to flat in late US trading.

-Price action elsewhere was restricted to commodity-tied FX, with AUD the best

performer of the day as copper, gold and oil strengthened. Better risk appetite

also helped the move as equities globally improved, helping push JPY to the

bottom of the pile.

-Tomorrow, focus turns to UK production numbers and German ZEW.