FX Update: Conditions have been thin
FX Update: Conditions have been thin in the absence of London markets and with the U.S. off today. The Euro traded firmer, with EUR-USD having edged out an 11-day high at 1.1215, while EUR-JPY and EUR-CHF concurrently recouped recently lost ground. EUR-GBP, in contrast, descended to a five-day low as the Pound rebounded from recent trend lows. Early results from the EU parliamentary elections suggest that pro-EU parties had held their ground for the most part. In the UK, which is under particular scrutiny given Brexit, the Brexit Party wan 31..6% of the vote, though this was balanced by a strong showing for pro-Remain parties, led by the Liberal Democrats, which took 20.3% of the vote. EUR-USD is up from the two-year low that was seen seen last week at 1.1107. The Yen has underperformed for a second consecutive trading day as safe-haven premiums unwound as the latest risk-off squall passed. AUD-JPY rallied by over 0.5% while USD-JPY lifted to an intraday high of 109.58. Sterling traded higher for a third consecutive trading day, with Cable posting a six-day high at 1.2747 before ebbed back somewhat. Aside from the EU electios, 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.