Forex news for North American trade on July 9, 2018:
- Boris Johnson resigns
- Boris Johnson releases resignation statement
- Theresa May says there won't be a second referendum on Brexit
- Theresa May: Cabinet agreed that preparations for a 'no deal' should be stepped up
- ECB's Draghi: Underlying fundamentals remain solid
- CFTC Commitments of Traders: Bets against the loonie continue to mount
- Jeremy Hunt named new UK foreign secretary
- Turkish lira sinks after Erdogan appoints cabinet
- US May consumer credit $24.559B vs $12.00B expected
- Transport PPS Chris Green resigns over Brexit
- Rees-Mogg says he has not submitted letter calling for May's resignation
- UK Conservative party chairman says he does not expect confidence vote
- ECB's Nowotny: Not too much of a risk to assume ECB could decide in July to end QE this year
Markets:
- S&P 500 up 24 points to 2784
- WTI crude up 23-cents to $74.03
- Gold up $2.50 to $1257
- US 10-year yields up 3.5 bps to 2.86%
- AUD leads, JPY lags
I think we've had enough UK political drama for one day. It started early in the morning with the resignation of David Davis and then Boris Johnson quit late in the day. Johnson's departure sent cable down to 1.3190 from 1.3350 but it bounced on confirmation that May won't face a confidence challenge, at least not today. Last at 1.3254.
More broadly, the US dollar was strong throughout North American trade. That was in part due to no bad news on trade, which is an admittedly low bar. USD/JPY tracked up to 110.80 from 110.40 and USD/CAD similarly added 40 pips.
EUR/USD was pulled down to 1.1745 from a high of 1.1791 as offers at the figure and European worries weighed.
Oil was briefly down to $73.00 on Europe and China releasing statements saying the Iran nuclear deal would be respected. The slide didn't last as oil bounced back to $74.00 at the end of the day.
Overall, it felt like a wild start to the week but when you look at the scoreboard, the moves were modest.
