Sterling is trading as the strongest major currency for today as boosted by Brexit optimism. It’s revealed that Brexit Minister Dominic Raab has told MPs November 21 is the date to close the deal with EU. It’s unsure how certain Raab was but the Pound is lifted anyway. Though, we’d like to emphasize that firstly, Pound’s strength is most apparent against Euro and Swiss Franc only. And it’s actually staying mixed for the week. Sterling’s rebound could also be due to repositioning ahead of BoE Super Thursday tomorrow.
On the other hand, Dollar appears to be doing rather well after stronger than expected ADP employment report. USD/CHF’s break of 1.0067 key resistance is a solid sign of strength. EUR/USD is going to test 1.1300 key support. USD/CAD could also be extending recent rally. Yen also jumps broadly today despite strong stock markets rebound. That could at least be partly attributed to the rebound in JGB yields. On the other hand, commodity currencies are generally pressured.
In European markets:
- FTSE closed up 1.31% at 7128.10
- DAX closed up 1.42% at 11447.51
- CAC closed up 2.31% at 5093.44, reclaimed 5000 handle.
- German 10 year yield rose 0.0185 to 0.388, staying below 0.40.
- Italian 10 year yield dropped -0.0398 to 3.432. German Italian spread remains above 300. It’s a reason for Euro’s sluggishness
In the US, at the time of writing:
- DOW is up 1.43%
- S&P 500 up 1.58%
- NASDAQ up 2.38%
- 10 year yield up 0.034 at 3.144
