Sterling had a wild wide today. It’s firstly lifted by a Bloomberg report that Germany and UK dropped key Brexit demand, paving the way for a deal. But then, the Pound was knocked down after a German government spokesman said that the stance was not changed. After all the volatility, the Pound is trading as the second strongest one for the day so far, next to Kiwi and better than Euro. Euro is clearly supported by sharply narrowed Italian-German yield spread. Italian politician’s promise for not blowing up the public account was well taken by investors.
On the other hand, Dollar is trading as the weakest one for today after yesterday’s rally attempt failed. Canadian Dollar followed as the second weakest. BoC’s standing pat was widely expected. The statement showed much confidence in policymakers and BoC is still on track for an October hike. But the Loonie is troubled by the deadlock in trade negotiation with the US. Yen got little support from risk aversion and is trading as third weakest. Rebound in German yield is a factor contributing to Yen’s sluggishness.
In other markets, US stocks are rather steady. DOW is up 0.04% at the time of writing, S&P 500 down -0.37% and NASDAQ down -1.06%. That’s nothing comparing to -1.0% fall in FTSE, -1.39% in DAX and -1.54% in CAC.
