FX Update: Risk-on and news of a Brexit deal
FX Update: Risk-on and news of a Brexit deal on divorce terms have provided the mains themes in the main forex markets so far today, a backdrop that has inspire yen underperformance on the one hand and sterling gains on the other. USD-JPY climbed for a third straight day, posting a 24-day high of 113.46. Progress in the corporate-friendly tax cuts underpinned Wall Street yesterday, and led to solid gains on Asian bourses today, along with the encouragement of strong Chinese export data and a solid Japanese growth numbers. Analysts also have news that the EU and UK have reached an agreement on divorcing terms, with European Commission president, Juncker, announcing that sufficient progress has been made. Cable rallied to a four-day high of 1.3521, though has since backed to the upper 1.34s amid a broader bout of dollar buying. The pound has held up better versus the euro and yen, among other currencies.