Market update: Sterling edges higher as risk mood stays positive

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Bigger moves in equities than FX

A modest risk-positive move is percolating in the FX market as the commodity currencies and euro begin to get a bid.

It’s a huge day for sterling as Boris Johnson travels to Brussels to try to break a deadlock in Brexit negotiations. So far, GBP is keeping pace on the dollar move. Cable is up 16 pips to 1.3371.

The impetus is coming from equities at the moment. After a mild start, the Nikkei 225 is now up 1% and the Hang Seng is up 1.3%.

There was an initial pop on US equity futures on a stimulus offer from Mnuchin but Democratic leaders have since rejected it. That hasn’t hurt the mood.

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