Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Dollar Down, But Focus is on Pound’s Brexit Woes and Japan’s PM Vote

Forex Sep 14, 2020 12:04AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Gina Lee – The dollar was down on Monday morning in Asia, but the focus centered on the British pound and Japanese yen.

The pound rallied from its fall during the previous session over increasing fears of a hard Brexit. In Japan, the ruling party will vote in a new leader later in the day, with the winner widely expected to replace incumbent Prime Minister Shinzo Abe.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies edged down 0.16% to 93.192 by 11:57 PM ET (4:57 AM GMT) and rolled over to the December contract on Sunday.

Investors await the U.S. Federal Reserve’s policy meeting, scheduled for Wednesday, with further monetary easing widely expected. But some investors cautioned against setting those expectations too high.

“Having set aside yield curve control as a near-term policy option, the FOMC does not seem to have an operational consensus on how to use the balance sheet,” Standard Chartered (OTC:SCBFF) Bank strategists said in a note.

“This may disappoint investors,” they added.

Other central banks, including Bank of Japan and Bank of England, are due to announce their policy decisions on Thursday.

The GBP/USD pair was up 0.22% to 1.2821, despite fears that the U.K. would exit from the European Union (EU) with no trade deal mounting and putting pressure on the pound.

London acknowledged during the previous week that it could break international law “in a very specific and limited way.” The comments led to backlash from European Commission president Ursula von der Leyen, as well as former prime ministers. Tony Blair and John Major said on Sunday Britain must drop the “shocking” plan to pass legislation breaking its divorce treaty with the EU, in a breach of international law.

The USD/JPY pair inched down 0.04% to 106.09 ahead of the ruling Liberal Democratic Party’s vote for a new leader, due to take place later in the day. Chief Cabinet Secretary Yoshihide Suga is predicted to win in a landslide victory, with the successor to Abe expected to be appointed on Wednesday.

Investors expect few radical changes, with Suga widely expected continue Abe’s current policies if appointed.

“The focus is on the line-up of his cabinet as well as whether he will call a snap election,” MUFG Bank chief FX strategist Minori Uchida told Reuters.

But he added, “He is saying he will continue and advance Abenomics but it is questionable how much advancement he can make."

The AUD/USD pair inched down 0.03% to 0.7281 while the NZD/USD pair was up 0.46% to 0.6694.

The USD/CNY pair inched down 0.04% to 6.8301. China is scheduled to release industrial production and retail sales data on Tuesday.

Dollar Down, But Focus is on Pound’s Brexit Woes and Japan’s PM Vote

Related Articles

Euro holds below $1.06 as Lagarde sticks to script
Euro holds below $1.06 as Lagarde sticks to script By Reuters - Jun 28, 2022 2

By Saikat Chatterjee LONDON (Reuters) - The Aussie and the Canadian dollar climbed on Tuesday on firmer oil prices while the euro held below $1.06 as European Central Bank (ECB)...

Dollar Up Despite Concerns Over Economic Recession
Dollar Up Despite Concerns Over Economic Recession By - Jun 27, 2022 1

By Zhang Mengying – The dollar was up on Tuesday morning in Asia despite worries about economic recession. Investors await a speech from the European Central Bank...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email