Euro, Franc Capitalize as Pound Struggles Amid Hard Brexit Fears


    DailyFX.com -

    Talking Points:

    • Euro, Franc capitalize as Pound struggles to shake off "hard Brexit" fears
    • Kiwi Dollar suffers as US bond yields bounce after yesterday's down swing
    • Confirmation hearings for Trump cabinet nominees present headline risk

    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 Euro and 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

    Euro, Franc Capitalize as Pound Struggles Amid Hard Brexit Fears

    European Session

    Euro, Franc Capitalize as Pound Struggles Amid Hard Brexit Fears

    ** All times listed in GMT . See the full DailyFX economic calendar here .

    --- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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