GBP Rallies on Brexit Headlines, AUD/USD Price May Look Past RBA

Asia Pacific Market Open – British Pound, Brexit News, Canadian Dollar, Australian Dollar, RBA

  • British Pound continues outperforming on Brexit headlines, EUR/GBP resumed downtrend
  • CAD up on Poloz speech, US Dollar weakness. Gains pared as crude oil declined thereafter
  • Australian Dollar may look past RBA, restrained market volatility as US 2018 midterms near

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The British Pound headed higher against its major counterparts Monday, adding to gains it enjoyed at this week’s market open which were driven by Brexit headlines. This was then compounded by a pullback in the US Dollar during Wall Street trading hours. Perhaps reflecting an unwinding of positioning ahead of local midterm elections.

The Canadian Dollar was unable to hold on to gains following commentary from BoC’s Governor Stephen Poloz. He mentioned that their policy rate ‘will need to rise to neutral to hit target’, but local government bond yields were little changed. This suggests that BoC hawkish bets were not fueled. His speech did coincide with weakness in the US Dollar, perhaps explaining CAD gains.


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