The recovery continues in the aftermath of the Brexit shock, US equities inidces reclaimed green territory yesterday at close. Major asian indices took the postive cue this morning as well, and also managed to shrug off some softer June data for the Chinese Manufacturing sector released overnight.
US Dollar remained in support this morning, with the US Dollar index (DXY) verging towards 96.00 levels. The British pound was seen staging a mild bounce, off yesterday’s lows, both against the USD and the euro, currently GBPUSD is at 1.3320 and the EURGBP is at 0.8326.
The pound has been facing both political and monetary headwinds, as Boris Johnson stepped down from the race for prime minister, and as BoE governor suggested more monetary easing may be in the cards this summer based on a deteriorated economic outlook for the UK out of the EU.
More stimulus is also expected from Japan as May CPI remains weak, and the Tankan survey released this morning continued to prtray mixed results.
Even the euro showed some signs of weakness, the EURUSD is entering its second day of declines after hitting session lows of 1.1024 yesterday. EURUSD is currently trading at 1.1096.
