The British Pound fell sharply at the Asia open today, following reports that UK Prime Minister May seeks a “hard Brexit”, meaning that the UK will leave the EU single market. GBP/USD opened around 1.20, down from 1.2190. It managed to recover slightly later in the session, to a high of 1.2055, but it will be difficult for it to fill the gap ahead of May’s speech.
This dragged the Euro lower as well, and EUR/USD opened at 1.0630, approximately 10 pips down from Friday's close. It declined to a low of 1.0600 after the Tokyo open. USD/JPY came under pressure amid falling equity markets and declined from 114.45 to 113.95.
The commodity currencies weakened as well, with AUD/USD falling from 0.7505 to 0.7470. The pair ran into major resistance at 0.7520, and the key support level to watch now is 0.74. NZD/USD declined from 0.7145 to 0.7090.
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