Sterling surged broadly last week after as UK Prime Minister Boris Johnson struck a new deal with EU on Brexit. It appeared that UK was on track to leave EU on October 31 in an orderly way. The development also took other European majors higher. However, uncertainty re-surfaced as the meaningful vote on the deal wasn't held in the House of Commons on Saturday. Instead, Johnson is now forced to seek another Brexit extension by an amendment. Northern Ireland's DUP also maintained its stance against the deal. Sterling might suffer some setback initially this week. Dollar suffered heavily selloff and ended as the weakest performing one, followed by Yen. Technical development of the greenback didn't look too well. But the decline looked exaggerated by readjustment on Brexit uncertainty. More time is still needed to confirm bearish reversal in the greenback. Canadian Dollar was the third weakest as traders turned cautious ahead of elections. Australian Dollar was mixed after job data lowered chance of another imminent RBA cut. |
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