USD recovery continues, but GBP outperforms...>

FOREX: USD recovery continues, but GBP outperforms on renewed harmonious Brexit

hopes

-Yesterday's USD bid tone extended through the Asia session, most noticeably in

USD/JPY, which has risen over 1.5% from last week's lows. As US yields continue

to climb (particularly in the shorter-end) ahead of $258bln treasury supply, the

dollar remains supported, lifting USD/JPY closer to the near-term target of

Y107.40/43. This marks the 23.6% Fib level for the Y113.39-105.55 move and the

38.2% Fib level for the Y110.48-105.55 move respectively.

-GBP is rivalling the USD's gains today on a Business Insider article writing

that the EU parliament is to call for 'privileged' Single Market access for the

UK post-Brexit. GBP/USD reclaimed $1.40 upon release and EUR/GBP touched a

two-week low.

-SEK the poorest performer in G10 as CPI missed expectations, with USD/SEK now

targeting the 50DMA at SEK8.1173.

-Calendar is light for the rest of the session, with attention turning to the

absorption of US 2y Notes at 1800GMT.