FX Update: The dollar has firmed up while the yen has underperformed
FX Update: The dollar has firmed up while the yen has underperformed ahead of the London interbank open. The solid U.S. jobs report last Friday and expectations for a strong corporate earnings season have been buoying equities, although Chinese share markets have continued to underperform and there is a palpable underlying sense that the U.S.-led trade way with major economies is curtailing bullish sentiment. The pound took a hit late yesterday, just before and after the London closing, on news that British Foreign Secretary Boris Johnson resigned in protest of the "soft Breixt" approach the Cabinet voted on on Friday. This followed the resignation of Brexit Secretary David Davies, and there concern is that this could develop from the politically problematic, from the perspective of Prime Minister May, to a party crisis and leadership challenge, with Johnson the challenger. Cable dove from levels above 1.3300 to a low of 1.3188, since settling around the 1.3250 mark. EUR-USD, meanwhile, has corrected some of the recent gains, dropping to the 1.1750 area after yesterday seeing a three-week high at 1.1790. USD-JPY broke above recent range highs and printed a seven-week high at 111.14. EUR-JPY and other yen crosses are also up, with EUR-JPY trading in seven-week high terrain and AUD-JPY making one-month highs.