| 2019-10-11 07:35:02|
07:35 10/11 10/11/19
FX Update: The dollar has traded softer
FX Update: The dollar has traded softer against most currencies outside the case for USD-JPY, which rose by virtue of a marked underperformance in the Japanese currency, while the pound continued to outperform as markets factored in greater odds for a deal on Brexit being reached by the UK and EU. Risk appetite has been riding high on hopes that the U.S. and China will come to a partial deal on trade, although prospects for a agreement in intellectual property and other contentious issues are limited. Cable and GBP-JPY were showing respective gains of 1% and 1.3% as of the early European PM session. The striking shift in tone of Irish PM Varadkar following his meeting with PM Johnson yesterday inspired the re-pricing, as he stated that he is "now absolutely convinced" that the British prime minister wants a Brexit deal. According to a Guardian source who has been briefed on the new proposals, the "pathway" to a deal hinges on an idea for Northern Ireland to leave the customs union and to continue to "follow" the EU customs rules. As it concerns the politically charged Irish border issue, plenty could still go wrong, but for now the prospects of a deal are looking much better than they were. EUR-USD rose for a third consecutive day, printing a high at 1.1044. The improved tone in Brexit negotiations has given the common currency a lift, outside the case of EUR-GBP. USD-JPY, meanwhile, printed a nine-day high at 108.29, while EUR-JPY and AUD-JPY have scaled into respective three-week and 10-day high terrain.