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Sterling shorts stung as Services PMI beats...>

FOREX
FOREX: Sterling shorts stung as Services PMI beats
-GBP is comfortably the best performer of the day as Services PMI printed
multi-month highs, lifting GBP/USD to highs of $1.3393 in Europe before news
that the opposition Labour party in the UK will push for a softer Brexit helping
briefly tip the pair above $1.34 in NY. Key resistance remains layered above
$1.34 before any test on the 200-dma at $1.3590.
-CAD was one of the worst in G10 as the US Govnt threatened to split NAFTA
talks, conducting one conversation with Mexico and one with Canada, despite
swift protests from Canada's trade minister. CAD briefly traded at levels not
seen since March before retracing.
-Softer equities saw Treasuries outperform, dragging the dollar lower with
yields, but the DXY remains well within the recent range. Reports that the ECB
see the June 14 meeting as 'live' for a decision on QE dented the greenback
further in favour of the EUR.
-Wednesday's light on data, but heavy on speakers, with various ECB and BoE
members due to speak.

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