G20 finance ministers and central bank chiefs vowed to do all that they can to reduce Brexit uncertainty and pursue global economic growth. The meeting focused little on fx and has resulted in mute trading so far, the G20 did conclude that the GBP has priced in much of the expected impact from the Brexit, and expect losses from here on in to be staggered if any. The EURGBP has key resistance at 0.8425 keeping it at bay, while the EURUSD continues to trade below the 1.1000 mark with 1.0900 a very likely scenario with today’s German Ifo Business Climate (expected at 107.7) the most likely event which can get it there, should the figure be released at worse than expected levels. The USDJPY has been capped at 106.75 and 106.00 as markets continue to adjust to BoJ Korudos statement that there would be no helicopter money just yet, if at all, and the USD firms as risk sentiment slides.
Today’s key economic releases are as follows:
- German Ifo Business Climate expected at 107.7
- CBI Industrial Order Expectations expected at -6
- Trade Balance expected at 128M