GBP Steady After Strong Labour Victory, USD/JPY Weaker, NFP Coming Up

The USD is tracking lower against all of the G10 currencies, although JPY has seen the strongest gains so far today. The BBDXY index sits back near 1261, off a little over 0.1%. This is fresh lows in the index back to the first half of June.

• GBP/USD has drifted a little higher, last near 1.2770. The election has been won by the Labour party, as many polls suggested. The margin for Labour looks to be around 170 seats, towards the upper end of expectations.
• USD/JPY has been tracking lower for most the session. The pair last around 160.65, up 0.40% in yen terms for the session. There doesn't appear a direct catalyst for this move. Broader USD sentiment is softer, after JPY, CHF is the best performer, up nearly 0.20%. Headlines crossed around extended Bitcoin losses, which may be weighing on broader risk appetite. China equities have also extended their losing streak.
• Earlier data showed weaker household spending for May, dipping close to 2% in y/y terms. Still, other data showed real income growth at multi year y/y highs. Comments from FinMin Suzuki also crossed the wires. The FinMin stated he will watch equity and FX trends with a sense of urgency (per BBG).
• Despite the negative equity trend in some markets, AUD/USD is right around recent highs in the 0.6735/40 region, up a further 0.15%. An iron ore pull back hasn't hurt sentiment so far today.
• The AUD/NZD cross is above 1.1000 as NZD continues to lag A4 gains. NZD/USD is slightly higher, but only as far as 0.6120.
• Looking ahead, UK markets will digest the strong Labour party victory. Before US markets return with the NFP report in focus.