The British Pound continued to trade lower overnight in a move that appeared to reflect follow-on momentum after UK Prime Minister Theresa May rekindled “hard Brexit†worries yesterday. The Eur oand the Swiss Franc traded higher, seemingly buoyed as the go-to regional alternatives to the UK unit.
The New Zealand Dollar also declined, trading inversely of benchmark US 10-year Treasury bond yields. The latter’s rebound probably reflects corrective price action after Fed rate hike bets cooled yesterday. As the highest-yielding G10 currency, the Kiwi can be particularly sensitive to shifting rate spreads.
Looking ahead, a sparse economic data docket overlaps with a pause in the otherwise steady stream of scheduled commentary from Fed officials. This leaves the markets somewhat rudderless, hinting that a consolidative tone may prevail in the near term.
S&P 500 futures look flat ahead of the opening bell on Wall Street, pointing to a neutral sentiment setting and bolstering the case for a sideways session. Complacency is dangerous however as confirmation hearings begin for nominees to US President-elect Trump’s cabinet, making for elevated headline risk.
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Asia Session
European Session
** All times listed in GMT. See the full DailyFX economic calendar here.
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