Sterling is so far, and will stay as, the biggest winner today on EU chief Brexit negotiator Michel Barnier’s positive comments. Even though the conclusion of the Brexit could still be delayed from October, there is very positive sign that there will eventually be a deal. On the other hand, Swiss Franc is notably much stronger than Euro today as Turkish Lira crisis re-emerges. USD/TRY hits as high at 6.479 today and is currently up 2.45% at 6.42. There are deeps concerns on funding problem of Turkish banks. Even though Euro isn’t that strong, it’s still much better than others.
Yen is sold off deeply, and is justly performing marginally better than Australian Dollar. Risk appetite picks up again in US session with NASDAQ and S&P 500 extending record run, with strong momentum. NASDAQ is currently up 0.85%, S&P 500 is up 0.56% and DOW is up 0.34%. Also, if should be noted that German 10 year bund yields surged 0.0246 to 0.406 today, back above 0.4 handle. US 10 year yield is also up slightly. Both are reasons that give Yen heavy pressure. Canadian Dollar also trades with undertone as we’re only hearing positive words on trade negotiation with US, but not concrete results yet.
In other markets, FTSE closed down -0.71% thanks to the rally in Sterling. DAX closed up 0.27% while CAC up 0.30%. Gold continues to consolidate in tight range above 1200.
