FXB - Brexit Dilution Lifts Sterling While Yesterday's Equity Rally Fades Powell Awaited
Overview: The increased likelihood that Brexit is delayed and the possibility of a second referendum is helping lift the sterling. As has been the case for most of the time since the June 2016 referendum, the prospects of a softer and/or later Brexit is understood as sterling-positive. The other key focus is US-Chinese trade. The delay of the tariff escalation and the prospects for a deal helped lift equity markets yesterday, but profit-taking is cutting those gains today. The MSCI Asia Pacific Index ended a six-day advance today with nearly all the regional markets lower.