Free Trial

Sterling Draws Support From UK Fiscal Headlines, Risk-On Flows Intensify

FOREX

The sterling caught a bid, seemingly in a delated reaction to headlines flagging UK Cll'r Kwarteng early departure from the annual IMF talks, as he returns to London to work on fiscal policy. The news fuelled speculation re: another U-turn in UK fiscal plans, with several media outlets suggesting that the government could abandon its plan to cancel a scheduled increase in the corporation tax next year.

  • Cable has added 22 pips and last deals at $1.1347, which filters through into broader USD weakness. The yen is the only worse performer, but USD/JPY is close to erasing its initial gains. The kiwi dollar continues to pace gains in G10 FX space amid relative strength in high-betas, as UK headlines support broader risk appetite.
  • In emerging Asia, USD/CNH is back sub CNH7.1700, after getting close to CNH7.2000 earlier. USD/KRW is sub KRW1430, also aided by higher equities.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.