PM May stands down, commodity-tied FX.........>

FOREX: PM May stands down, commodity-tied FX improves

- PM May announced that she would step down as Conservative leader on June 7th

with the leadership contest expected to begin the following week. Sterling

witnessed a volatile session with headlines dictating price action. GBPUSD

initially breached 1.27 on May's announcement, before quickly retracing the

move. Boris Johnson remarks that 'wants a pragmatic Brexit, but must prepare for

a no deal', further pressured to 1.2648 before fading.

- EURGBP is looking to extend its winning streak for a 15th session with a close

above 0.8838 needed for confirmation.

- Soft US Durable Goods data pressured USDJPY back through Y109.50, gold rallied

above $1284, 10y UST yields breached 2.31%. The 200-wma comes in today at

2.3580%, a level not closed below since Sep 15 2017.

- SEK sits top of G10 following Dep Gov Skingsley remarks that said 'sees no

problem with Krona strengthening'. EURSEK touched pullback lows of Sek10.6953.

- Commodity tied FX improved throughout the session with firmer oil prices.

AUDUSD cleared 0.6920, USDCAD touched C$1.3439, while EURNOK eased to Nok9.7426.