Summary

• The UK’s sixth prime minister since Brexit a decade ago has resigned and will oversee the selection process of his successor. Sterling was initially sold but has come back to record near-session highs late in the European morning.
• The dollar is mostly firmer, but so far has held above last week’s lows against the euro and sterling. The Canadian dollar is extending its slide into the eighth consecutive session.
• The yen snapped a five-day slide ahead of the weekend but is softer today, and the greenback is knocking against the recent high (~JPY161.80).
• Asia-Pacific and European equities fell. The MSCI Asia Pacific index fell for the first time in six sessions.
• Europe’s STOXX 600 had broken a five-day winning streak on June 18 and fell further on the 19th. It fell to a six-day low today. US index futures are narrowly mixed.

Conflicting news from the Middle East initially lifted oil prices and weighed on risk-taking appetites, but US-Iran negotiations continue and both sides report progress. Oil prices have come back off. The dollar is mostly firmer, but so far has