Daily FX Wrap: Brexit whispers emerge, as markets await Yellen and May in the week
GBP has seen an indecisive day, as investors begin to prepare for PM May on Friday. Cable found support at yesterday’s low, as bulls seemed to take some aid in, later rebuffed reports, that Brexiteer Boris Johnson could resign. The political volatility has led into sterling uncertainty once again and does come as we approach a reveal of PM May’s Brexit vision, via her speech in Florence, Italy.
EUR saw an initial spike lower on ECB source headlines stating, ECB policymakers said to disagree on whether to set firm end date for bond-buying, helping EUR/USD pull away from the 1.20 level. The move was short lived, as trading has been limited today with much anticipation on the week’s risk events, bouncing back to consolidate within the day’s range.
JPY has found volatility following reports that PM Abe could call a snap election, with reports stating that he will make a decision when he returns from his trip to the US. The Yen has struggled to find any direction as a result. Abe’s support for a BoJ governor who would continue large-scale monetary easing is an underlying issue for JPY if a snap election is called. Bids were filled around the 111.25 area, with 112.80 now a likely target for bulls to attack.
USD has seen subdued trade throughout the session, as positions were likely limited as Trump speaks at the UN and anticipation is on tomorrow’s FOMC meeting, with odds of a December move now around a coinflip. The rhetoric will be the focus tomorrow, with many touting the board to not follow the hawkish lead from the BoC, BoE and ECB.
19 Sep 2017 - 15:37- ForexBank Speaker- Source: RANsquawk
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