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Pullback Considered Corrective


EGB Supply For W/C Sep 20, 2021: Upcoming

Final Stretch


GBP easily outperformed is G10 peers in thin, pre-holiday trade on the back of reports that the Brexit deal is down to the short strokes, with negotiators rushing to finalise the text of the agreement before its expected announcement in the London morning. Cable added ~50 pips in the Asia-Pac session, building on the solid gains posted Wednesday, albeit neither GBP/USD nor EUR/GBP managed to push through the prior day's extremes. Upside in cable is tempered as EUR/GBP struggles to break through 0.90

  • For the most part, major crosses were happy to hug tight ranges with activity sapped by market closures in the likes of Indonesia and the Philippines. Macro flow was few and far between, providing little to move the needle.
  • Brexit positivity supported broader sentiment, applying pressure to USD & JPY, which were among the worst performers in G10 FX space, although the DXY ticked away from lows in the second half of the session. NZD also struggled, unlike AUD, which allowed AUD/NZD to resume gains after snapping its four-day winning streak yesterday.
  • The PBOC fixed USD/CNY at 6.5361, 197 pips lower than yesterday's fix as the greenback recedes and the redback advances alongside Asia FX.
  • Remaining points of note on today's thin calendar include Canadian building permits, ECB Economic Bulletin & the latest MonPol decision from the CBRT.