FX Update: Sterling has been the star performer
FX Update: Sterling has been the star performer, with markets responding to a story in the Telegraph newspaper reporting that the UK and the EU have agreed on a financial divorcing settlement, which could be up to GBP 55 B, according to other sources. Despite a government source saying that "there is, as yet, no settlement" and "negotiations are ongoing," and despite the fact that the Irish border remains a sticking point with Dublin intransigent on its view that there can be no hard customs border between the north and the south, the pound rallied. Cable clocked a two-month high at 1.3407, GBP-JPY forayed in to two-week high terrain while EUR-GBP logged an eight-day low. The other major news item today was North Korea's ICBM launch, and Pyongyang bragging that it could now reach any part of the U.S. mainland. After a two month lull in launches, the action shows that North Korea hasn't been swayed by pressure from either Trump or the China. Markets took the news in their stride, however. Most Asian bourses have gained, while the yen saw only a fleeting and limited bout of haven demand. USD-JPY has settled in the mid 111.0s. EUR-USD lifted modestly, above 1.1650, rebounding from a two-session decline.