Weaker dollar spills over into Europe, PM.....>

FOREX: Weaker dollar spills over into Europe, PM May Resigns

- Yesterday's weaker dollar theme which saw 10y UST yields print their lowest

levels since mid-Oct, spilled over into Europe. While PM May announced her

departure timetable.

- EURUSD triggered short-term stops on the break of 1.12, touched 1.1205 before

fading.

- GBPUSD played catch-up with EURUSD, before the release of strong UK Retail

Sales lifted to $1.2690. PM May's resignation briefly extended through $1.27.

EURGBP's winning streak continued with bulls looking to recover Wednesday's high

at 0.8840, before challenging the 50% fibo of Gbp0.9415-0.8305 at Gbp0.8860.

- AUD is the only G10 ccy registering losses against the USD, this followed

Westpac's revision to its RBA call which now sees three more 25bp cuts. AUDUSD

holds around $0.69, with downside focus on a break of the ytd low at 0.6865.

- USDCAD briefly cleared trendline resistance & the 1.35 level yesterday, but

failed to close above. The subsequent retracement extended back through 1.3450

with firmer oil prices. NOK tracked the move to Nok9.7569 and sits top of G10.