HALISTER1: INSIDE G-10: Pound Punished After Boris Johnson Backs ‘Brexit’

INSIDE G-10: Pound Punished After Boris Johnson Backs ‘Brexit’

(Bloomberg) -- GBP holding losses after gapping lower in early Asia following London mayor’s decision to support the exit vote in June’s EU referendum.
  • GBP/USD -0.84% to 1.4285 vs 1.4235/1.4332 range
    • Confusion in Asia over how low sterling has fallen: traders
    • EUR/GBP bids from macro funds below 0.7760, trader says
    • Moody’s says it may revise U.K. to negative on “Brexit”
    • U.K. assets haven’t priced in EU exit premium
    • GBP/JPY may overshoot toward 157-158 on EU exit risk: RBS
  • USD/JPY +0.23% to 112.89 vs 112.36/113.05 range
    • Rising on cross buying and higher Nikkei, which is +0.9%
    • EUR/JPY selling seen by small European funds: traders
    • Nikkei Japan Feb. flash PMI 50.2 vs 52.3 in Jan. and 52.0 est.
  • AUD/USD +0.39% to 0.7176 vs 0.7136/0.0.7179 range
    • Lifted via buying in AUD/JPY by Japanese banks, trader says
  • EUR/USD -0.15% to 1.1112 vs 1.1104/1.1135 range
    • ECB choices weighed as volatility signals risks
    • Leveraged funds reduced net USD long position for third week
  • NZD/USD +0.48% to 0.6664 vs 0.6622/0.6668 range
  • Foreign exchange traders among hardest hit in bank cuts
  • Bloomberg Dollar Index +0.09% to 1,220.37
  • U.S. Treasury 10-year yield up 2 bps to 1.767%
  • S&P 500 futures up 12 points to 1,926
  • Brent crude +1.5%; gold -0.8%; copper +0.7%
  • NOTE: Inside G-10 (NI ING10), is a G-10 currency update published throughout the trading day. To subscribe to Inside G-10, please click here, “Display & Edit” and then “Set Alert Delivery”
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Boris Johnson (Greater London Authority)

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