USDJPY printed a six-week low at 109.70, ratcheting up a week-on-week decline of 1.3%. Sharp equity market losses across bourses in Asia have maintained demand for safe havens, including the Japanese currency. AUDJPY also posted a six-week low, while EURJPY remain heavy, although has so far remained above the two-month low the cross saw late on Friday. The dollar bloc currencies came under some pressure; AUDUSD posted a six-day low at 0.7065 while USDCAD scaled to a two-week high. EURUSD, meanwhile, has remained relatively steady, tightly orbiting the 1.1300 level.
Sterling has come nuder modest pressure, with Cable pegging an intraday low at 1.3167. On the Brexit front, there has been speculation over the weekend that up to 11 of Prime Minister May’s cabinet have threatened to resign unless she steps down, although some senior ministers have denied this amid other speculation that she could be making a deal to quit in return for supporting her EU Withdrawal Agreement. The agreement it set to be voted on for a third time, although there has been no confirmation as yet, and probably wouldn’t go ahead unless May sees she has sufficient support for it. Parliament will also have a chance this week to form a consensus on alternative Brexit plans, potentially taking control from the government (unprecedented in modern times) on Brexit. If Parliament were to succeed, this would likely mean a soft version of Brexit and quite possibly subject to a ratifying referendum. This scenario would also entail a lengthy delay before the UK left the EU.
Up to 1 million people marched in London demanding a Peoples Vote, over 5.3 million have signed a petition to revoke Article 50 and remain in the EU and 500,000 have signed a petition to leave without a deal.
The BREXIT saga enters the End Game.
Head Market Analyst
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