FX Update: Sterling dove on weekend Brexit news
FX Update: Sterling dove on weekend Brexit news, with a speech by PM May scheduled for Tuesday reported by several Sunday newspapers to be the venue where she will make clear that the government will take the UK out of free access of the EU's single market. Confirmation of a "hard" Brexit in other words, though government sources have downplayed this as being "speculation." In the scenario that she confirms this, the focus will be how quickly and under what terms the UK will re-establish a new trading deal with the EU and the 60 other economies that the EU has a trade deal in place. Cable hit a three-month low of 1.1987, and EUR-GBP has spiked to two-month highs above 0.8850. Elsewhere, USD-JPY ebbed to a six-week lows in the mid 113s, reflecting demand for currency safe haven of the yen with stock markets in Asia and U.S. index futures trading mostly lower. EUR-USD drifted lower, pulled down by Cable's descent, making a low of 1.0605, nine pips above Friday's low. U.S. markets will be closed today for the MLK holiday.