PBoC fixes USDCNY Reference Rate At 6.8915 (prev fix 6.8782 prev close 6.8820)
Asia stocks up with dollar, sterling suffers on Brexit day – RTRS
Consumer confidence hits 16-year high in boost to economy – RTRS
Dollar bounces on Fed talk, sterling wobbles on Brexit anxiety – RTRS
The British Pound declined sharply overnight. UK Prime Minister May signed the Article 50 letter which will take the country formally out of the European Union. This was no surprise at all, but the market reacted negatively anyway. GBP/USD fell from 1.26 to 1.2440 yesterday, and extended losses to 1.2370 in Asia. Strong support is noted at 1.2340, followed by 1.2300.
The Dollar recovered against most major currencies yesterday. Resistance at 1.09 proved to be too tough for EUR/USD and the pair fell briefly below 1.08 in yesterday’s late NY session. However, short-term techs remain positive as long as it is trading above 1.07.
USD/JPY managed to bounce ahead of 110 once again. The pair rallied to 113.30 in Asia and key resistance is seen around 111.50. Should it break above it, USD/JPY could rally further to at least 112.30.