USD Ticks Lower, GBP/USD Steady As UK Exit Polls Point To Strong Labour Majority

It has been a relatively steady start for G10 FX. There is a slight bias towards USD losses in recent dealings, but shifts are not much beyond 0.10% at this stage. The BBDXY last tracked down a touch near 1262.0.

• Exit polls point to a strong Labour Party victory in the UK general election (170 majority). Labour was well ahead in the opinion polls, but such a majority may be larger than some envisaged. If realized, it may also see a sharper swing to left leaning policies. GBP/USD has been very steady though, last little changed in the 1.2760/65 region.
• USD/JPY is tracking softer, testing sub 161.00 in recent dealings. Support has emerged sub this level so far. Yen has been an underperformer int he past week in the G10 space. Earlier data showed a dip in real household spending, which went against market expectations, although real household income growth was the strongest in a number of years. Yen has been an underperformer int he past week.
• AUD/USD is a touch higher, testing recent highs at 0.6734, still outperforming the NZD. The AUD/NZD cross is probing above the 1.1000 handle. NZD/USD was last near 0.6120.
• In the cross asset space, US yields have opened firmer, with back end benchmarks up a little over 1bps. Regional equity trends are mixed, with slight yen firmness curbing Japan stocks.
• Looking ahead there is little in the way of major data events for the rest of the Asia Pac session. We have the US NFP print later.