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Curve Twist Steepens, Futures Narrow

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EDU2/Z2/H3 Fly Given

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FOREX
FOREX: Sterling under pressure as UK government doubles down on No Deal
-UK PM Johnson is apparently preparing for negotiations with the EU to
"collapse" and is manoeuvring to shift the blame onto the European Union and the
Republic of Ireland, according to a report in The Spectator magazine. This,
twinned with the release of a tariff schedule from the government in the event
of a disruptive departure, has prompted markets to shy from GBP, pressuring
GBP/USD through the $1.2266 trendline and narrowing the gap with the $1.2256
50-dma.
-Risk appetite is more mixed elsewhere, with no clear direction for either haven
currencies or high beta FX. After underperforming yesterday, NZD has bounced
slightly and is dragging the AUD higher with it. The greenback is mildly softer
thanks to a lower and flatter US curve as equities are in modest negative
territory.
-The US PPI report and Canadian housing starts/building permits are the calendar
highlights Tuesday. Speeches from BoE's Tenreyro, ECB's Lane & de Cos and Fed's
Powell, Kashkari & Evans 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