FX Update: The dollar has remained buoyant
FX Update: The dollar has remained buoyant, which has seen the narrow trade-weighted USD index hit a fresh 28-month high today, at 99.33. EUR-USD concurrently ebbed to a new 28-month low at 1.0930 in what is now the pair's seventh consecutive day of printing lower lows. The pairing is down by around 1.3% from week-ago levels. Cable, meanwhile, has traded below 1.2000 for the first time since January 2017, which, aside from a broadly firmer dollar, has been a consequence of pound underperformance as a tumultuous, future-defining week commences on the UK political scene. Opposition members of parliament are primed to today wrest control of the House of Commons agenda and attempt to pass legislation that would stop a no-deal Brexit on October 31, which could happen either today or tomorrow. Prime Minister Johnson has made it clear that he will call a general election if such legislation were passed, which, according to reports, would be staged on October 14. Two thirds of the House would need to approve an election, and leaders of the Labour Party, the principle opposition, have stated they would back an election on the condition that Johnson doesn't try to pull a fast one and trigger Brexit before an election took place. Elsewhere, USD-JPY has settled in an oscillation in the lower-to-mid 106.0s. AUD-USD printed a four-week low at 0.6687 following sub-forecast Australian retail sales data. The RBA left the cash rate at a record low 1.00%, as anticipated, though the statement pointed to tentative signs of improvement in the Australian economy's fortunes, which helped spark about a 30 pip rebound in the Aussie.