FX Update: The dollar has traded softer
FX Update: The dollar has traded softer, for the most part, losing ground to the euro, Swiss franc, sterling and yen, among other currencies. EUR-USD posted an intraday high at 1.1593, which reverses most of the decline seen on Friday. The move happened concurrently with a rebound in European stock markets, which were on net showing modest gains on the day as of the early European PM session. Italian yields have remained steady, while Portuguese bonds rallied after Moody's upgraded Portugal's sovereign debt from a junk or an investment grade rating. USD-JPY tipped to a one-month low at 111.62, making this the second consecutive week of declines. EUR-JPY and most other yen crosses have skirted lower, although the move in USD-JPY also reflects a broadly softer Dollar. It was a negative day for Asian stock markets and U.S. equity futures, though European shares were showing modest gains as of the early PM session in Europe after recovering from intraday losses. The Pound came under moderate pressure on news that the respective lead negotiators from the UK and EU, Raab and Barnier, faltered over the Irish border backstop issue. The lack of support for Prime Minister's Brexit plan, aka the Chequers plan, is also coming into sharp focus ahead of Wednesday's EU summit. Cable posted a three-session low at 1.3084, while EUR-GBP has lifted to a 10-day high at 0.8826.