- The DUP is not ready to support May’s Brexit deal, leaving more questions than ever about the UK’s path forward. Sterling was, along with the yen, the weakest major currency on the day on the renewed uncertainty.
- The Australian and New Zealand dollars were the strongest major currencies on the slightly pro-risk tone to today’s trade.
- After last week’s dovish Fed meeting, futures traders are now pricing in a 75%+ chance of a rate cut from the Federal Reserve by this time next year. The yield curve in the US remains inverted across multiple maturities, prompting fears of a recession in the next year or two.
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