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Cable's round trip was the highlight of.......>

FOREX: Cable's round trip was the highlight of Monday's session. Political
wrangling saw GBP modestly bid across the late Asia/early EU session, after
dissenting Brexit Min Davis resigned, which allowed the market to believe the
passage of a soft Brexit would be easier for PM May. This sentiment was
short-lived, as Foreign Sec Boris Johnson's resignation saw traders sell GBP/USD
from $1.3363 to $1.3190. The cross 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 & hard Brexiteer)
hadn't tabled a no confidence vote in the PM and doesn't expect one. This
allowed GBP/USD to turn bid, and trade back to flat levels in late U.S. dealing.
- Price action elsewhere was restricted to commodity-tied FX, with AUD the best
performer of the day as copper, gold and oil strengthened. Improved risk
appetite also helped the move as global equities improved, pushing JPY to the
bottom of the pile.
- Tuesday's focus turns to UK production & monthly GDP data, German ZEW, ECB's
Visco/Italian EconMin Tria & ECB's Lautenschlaeger.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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