Entering into US session, Sterling is the second strongest one for today, just next to New Zealand Dollar. Markets are seeing UK cross-party politicians’ move to block no-deal Brexit as positive to the Pound. In particular, the campaign is gathering momentum today as key Labour member expressed they’re highly likely to join. Meanwhile, Kiwi is the strongest one as stronger than expected CPI lowers chance of a RBNZ rate cut.
On the other hand, Yen and Dollar are weakest for today so far. Risk sentiments turned cautious in Asia on renewed worries over US-China trade talk. But White House economic advisor Larry Kudlow was quick to come out yesterday to emphasize that the high-level meeting later this month between USTR Robert Lighthizer and Chinese Vice Premier Liu He was “very, very important” and “determinative.” And, We are moving towards negotiations.” Risk sentiments in European session turned positive in Europe and US futures point to rebound.
In Europe, currently:
- FTSE is down -0.22% thanks to rally in Sterling.
- DAX is up slightly by 0.28%.
- CAC is up 0.46%.
- German 10-year yield is up 0.009 at 0.246.
Earlier in Asia:
- Nikkei closed down -0.14%.
- Hong Kong HSI rose 0.01%.
- China Shanghai SSE rose 0.05%.
- Singapore Strait Times dropped -0.68%.
- Japan 10-year JGB yield rose 0.0034 to 0.004, turned positive.