Halister News

(Bloomberg) -- GBP advances for a third-straight day as the U.K. moves closer to ending a political leadership vacuum, while USD/JPY rises above 103.00 as investors await details of Japan PM Abe’s stimulus package.

• Stoxx Europe 600 climbs 0.9%; Nikkei index rises more than 6% in two days
• GBP/USD up 1.2% to 1.3152, trades near 1.3157 day high; next resistance at 1.3206, the June 30 low;
  • EUR/GBP -0.7% at 0.8453, with support at 0.8406 in focus
  • GBP sees relief rally as Theresa May set to become new PM, but may be short-lived, Commerzbank says
  • Amundi’s Bradshaw favors long-dated gilts as BOE easing is on cards
  • Options expiring today include GBP1.34b at 1.3500
• USD/JPY up 0.5% to 103.36, testing important resistance at 103.39/58
  • Japanese PM Abe ordered Economy Minister Ishihara to compile economic stimulus measures by the end of the month
  • Further easing measures will mainly take the form of credit easing, quantitative easing or fiscal stimulus as an understanding of the limits of monetary policy has increased: Nordea
• EUR/USD up 0.5% to 1.1115 vs 1.1052-1.1126 range
  • Resistance AT 1.1162, 21-DMA
  • IMF urges action on Italy’s bank bail-in; La Stampa reports an agreement to protect MPS bondholders is in sight
  • Any agreement to protect the sub bond holders of Italian banks would reduce the risk of PM Renzi losing the Constitutional referendum in October: Credit Agricole
  • Options expiring today include 1.1050 strikes for EUR1.21b
• BBDXY down 0.4% to 1,186.86
  • Broad-based USD selling by leveraged, momentum accounts seen versus G-10 currencies in early Europe session, coinciding with headlines on Italy-EU MPS deal, according to an FX trader
• Fed’s Mester says timing of Fed move depends on how economy evolves; need to consider Brexit in medium-term outlook