FX Update: The dollar has settled after weakening yesterday
FX Update: The dollar has settled after weakening yesterday. EUR-USD has remained below the two-week high seen yesterday at 1.1358. The high was a product of the dollar's underlying softening bias amid expectations for the Fed to trim inflation forecasts and lower dot plots, and following last week's surprising benign inflation data out of the U.S. USD-JPY and yen crosses have mostly traded lower amid moderate outperformance in the Japanese currency that was seen during the Asian session. USD-JPY has printed a six-day low at 111.20, while EUR-JPY has extended its correction from a two-week high that was seen yesterday. AUD-JPY has also corrected after seeing a two-week high yesterday. Chinese shares have posted moderate losses, pulling back after yesterday's surge, while the MSCI Asia-Pacific (ex-Japan) index settled near flat after printing a six-month high. Sterling saw a dip-then-rebound action on news that the House of Commons speaker in the UK's Parliament, Bercow, ruled out a third vote on Prime Minister's EU Withdrawal Agreement unless it is re-submitted in a motion with substantive changes, the logic being that the motion was "substantially the same" as the as the previously rejected one. Cable repaired to the upper 1.3200s after dipping to a low of 1.3184.