Spain's political stalemate might end in more elections - here's what's happening in FX
It's pretty quiet out there in FX as of 8:00 a.m. EST.
Here's the scoreboard:
- The euro is little changed at 1.1284. Notably, Spanish political leaders are meeting on Tuesday for a final round of talks to resolve a four-month political stalemate, reports Reuters. Should they fail to end with a successful outcome, the country will likely see a new election.
- The Japanese yen is stronger by 0.3% at 110.88 per dollar. The currency is stronger for a second day in a row after it was sharply weaker last Friday following a Bloomberg report that the Bank of Japan might introduce negative interest rate loans. "Why did the dollar-yen react so quickly to the latest media report? In hindsight, we attribute the reaction to against pressure from speculative short build-up, position adjustments ahead of the weekend, and chain-reaction loss-cutting after breaking through the ¥110 resistance line," wrote Deutsche Bank strategist Taisuke Tanaka in a note to clients.
- The British pound is up 0.5% at 1.4558, suggesting that concerns over a Brexit are diminishing. "It's essentially a change in perception with regards to the probability of a Brexit," Richard Benson, managing director and co-head of portfolio investment in London at Millennium Global Investments, told Bloomberg News. "The move is not so much people taking profit, it's people stopping out their losses in sterling positions."
- The South Korean won closed weaker by 0.3% at 1,151.01 per dollar after the latest data showed that Korea's GDP slowed. Korea's economy expanded at 0.4% quarter-over-quarter, as analysts were expanded, and was below the previous quarter's 0.7%.
- The dollar index is weaker by 0.3% at 94.59 ahead of a busy data including, including durable goods, Case-Shiller home prices, Markiet Flash Services PMI, consumer confidence, and Richmond Fed manufacturing.
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