FX Update: The Dollar and Sterling have come under general pressure
FX Update: The Dollar and Sterling have come under general pressure, with EUR-USD showing an intraday gain of 0.5% in printing a three-week high at 1.1442, while EUR-GBP saw an every bigger gain in posting a 10-week high at 0.8978. The Pound underperformed the Dollar, too, which has driven a modest loss in Cable, to the lower 1.2700s. Markets are bracing for tomorrow's Brexit vote in the UK Parliament, which the prime minister has affirmed will be taking place despite reports of it being been_delayed , and which is widely expected to see the government's Brexit deal voted down. Labour, the Liberal Party, Northern Ireland's DUP, Scotland's SNP, and significant numbers of Conservative Party members (mostly from the Eurosceptic cabal, but also some Remainers) are all set to vote against it. If the deal is rejected, it would immediately create scope for multitude scenarios in the coming weeks depending on how big the defeat is. Elsewhere, USD-JPY ebbed by about 40 pips in making a two-session low at 112.24, subsequently setting around the 112.40 mark, leaving last Thursday's six-week low at 112.23 unchallenged. Most Yen crosses also dipped, before most more than recovered intraday losses. Risk aversion remained in play with Asian equity markets posting hefty losses, and with S&P 500 futures also down on concerns about trade protectionism and worrisome data. Japan's final Q3 GDP report saw a sharp downward revision, to -0.6% q/q from the -0.3% q/q prelim estimate. China's November trade data also showed both imports and exports missing expectations.