• Global equities rose yesterday amid improving risk sentiment
  • General USD weakness but USDJPY outperformed overnight
  • Stronger-than-expected UK data helped fuel GBPUSD rally


Most global equities rose yesterday and the S&P 500 hit a new record high on the back of relief the recently announced US-China trade restrictions may not be as damaging as initially thought. In FX, the USD Bloomberg Spot Index fell amid the improving risk sentiment
The shift in risk sentiment also hit JPY which reached a two-month low vs the USD this morning
AUDUSD rose yesterday after S&P raised Australia’s sovereign ratings’ outlook
GBPUSD was supported by an upside surprise in UK retail sales data which increased the market’s expectation of BoE rate hikes in 2019. The data print coupled with general USD weakness helped GBPUSD to rally up to 1.3298 yesterday
With regards to Brexit, language from EU officials at the Salzburg Summit showed little appreciation of progress in negotiations (Reuters) and markets will likely continue to watch any further headlines
Our traders currently see GBPUSD support at 1.3200 while resistance comes in at 1.3300. EURGBP support is at 0.8850 while resistance lies at 0.8910 and 0.8935-55
In EM, Turkey’s Medium Term Plan was encouraging in terms of fiscal tightening and growth targets, however did not meet expectations regarding the support for banks to address “bad” USD-denominated debt; USDTRY closed the day modestly lower after a volatile session
Elsewhere, ZAR rallied vs the USD after the SARB’s took a hawkish stance in its monetary policy statemen