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Poor start to the week for commodity-linked...>

FOREX
FOREX: Poor start to the week for commodity-linked FX as the DXY makes another
attempt on the 200-dma
-AUD and NZD are the weakest currencies today, led lower by a weak commodity
complex (both energy and metals are broadly lower today) prompting NZD/USD to
trade on track to record its 9th negative trading session of the past 10.
-GBP underperforms most others, with GBP/USD dropping to the lowest since Mar1
as the resignation of the Home Secretary tips the cabinet balance further
towards ministers that steer towards a hard Brexit. GBP/USD found very little
support on the way through Friday`s lows and the rate not targets $1.3712 for
confirmation of a deeper break lower.
-The DXY looks to be making another attempt at the 200-dma at 99.98 after a
failure to close above on Friday, with much of the USD`s strength coming on the
back of a falling EUR/USD rate, as regional German CPIs continue to point to a
sanguine inflation profile across the Eurozone.
-US data is thick and fast today: Personal income/spending, Chicago PMI and
pending home sales are all due.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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