FX Update: Risk-off positioning have unwound some more in the forex markets
FX Update: Risk-off positioning have unwound some more in the forex markets, with the dollar, yen and Swiss franc all losing ground to most of the main currencies today. A rally of over 0.5% in AUD-JPY has led the way, which has extended the rebound-form-trend lows seen late last week. The cross hit a three-day high at 78.88. Yen underperformance lifted USD-JPY to an intraday high of 109.55. EUR-USD edged out an 11-day high at 1.1215, while EUR-JPY and EUR-CHF concurrently recouped recently lost ground. Sterling traded higher for a third consecutive trading day, with Cable posting a six-day high at 1.2747 while EUR-GBP descended to a five-day low. Markets are still adjusting to the changing seascape in UK politics following the announcement resignation of Prime Minister May last week. The list of candidates for new leader of the Conservative Party, and hence new prime minister, grew over the weekend, and include some that would rule out a no-deal Brexit scenario and those that favour it if necessary. UK and U.S. markets will be closed today, so volumes and commitment will be limited.