FX Brief: Cable Set to Close at a 2+ Year Low as No-Deal Brexit Odds Rise

See a summary of the top FX themes and trends from today's US session!

  • GBP/USD dumped to close at a 2+ year low as both candidates for Prime Minister declared the Irish Backstop “dead,” increasing the risk of a no-deal Brexit later this year. Frontrunner Boris Johnson even suggested he could suspend Parliament ahead of Brexit Day in October.
  • US retail sales printed stronger-than-expected at +0.4% m/m (vs. +0.2% eyed). Core retail sales also beat expectations at +0.4%, though there were negative revisions to last month’s report on both fronts.
  • “Trade war” truce in danger? President Trump said he could impose more tariffs on China if he wanted and that there was a long way to go with China on trade.
  • The US dollar was the strongest major currency today while the aforementioned pound sterling was the weakest.
  • Bitcoin dumped to trade back below $10k after US lawmakers expressed skepticism over Facebook’s Libra cryptocurrency.
  • WTI crude oil fell nearly 3% on the day to trade back near $58.


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