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Needle Still Points North


Bearish Correction Still In Play

FOREX: The USD has unwound a large chunk of its modest early Asia-Pacific
strength after USD/JPY failed to mount a real test of its next notable
resistance level, the Jan 08 low (Y112.87).
- Cable was the notable early mover, shedding over 30 pips at one point after a
media report noted that U.S. President Trump believes that UK PM "Theresa May
ignored his advice by opting for a soft Brexit strategy." Trump reportedly went
on to warn UK PM May that "any attempts to maintain close ties with the EU would
make a lucrative US trade deal very unlikely." GBP/USD's Jul 04 low/61.8%
retracement of the move from $1.3050 to 1.3363 ($1.3171/70) held, with the pair
last ~$1.3180.
- AUD has been the marginal outperformer, in what has been a news-light session.
Fed non-voter Kashkari noted that firms are telling him that they are struggling
to attract workers, while the Chinese trade balance did little to generate any
notable FX activity, as a soft import print pushed the headline trade surplus
wider than estimates.
- Fed's Powell & Bostic as well as BOE's Cunliffe headline on Friday.
MNI London Bureau | +44 0203-865-3809 |