FX Update: The dollar has been on the ascendant
FX Update: The dollar has been on the ascendant. EUR-USD posted fresh intraday lows under 1.1360, a move that was concomitant of a renewed spike in Italian yields following disappointing GDP data out of Italy. USD-JPY, meanwhile, rose to an eight-day high of 112.86, extending a rebound from sub-112.00 levels, while EUR-JPY and other Yen crosses also rose as the Japanese currency's safe-haven premium unwound. The biggest mover was AUD-JPY, which rose by 0.9%. China announced fresh initiatives to shore up its equity markets, with its securities regulator announcing that it will encourage share buybacks and investment from insurance companies, and M&A among listed companies, while Trump said, with typical hyperbole, that he can foresee a "great deal" with China during an interview with Fox News yesterday. This helped China's SEE index close 1% for the better, while Japan's Nikkei finished with a 1.4% gain. S&P 500 futures also gain, though sentiment across European bourses has been decidedly more mixed. The pound has posted fresh declines versus the Dollar, Euro and other currencies. Cable has descended into two-month low territory below 1.2760. There was no specific news catalyst; yesterday's mid-fiscal year budget in the UK didn't surprise, while Brexit uncertainty remaining driver of sterling selling.