China: CPI slowdown continues to give PBOC a chance to cut - MUFG

Research Team at MUFG, suggests that without Brexit, DXY would have fallen a couple of points in June.

Key Quotes

“As it stands, it's pulling back from post-referendum highs but remains higher than pre-referendum, signifying a continuing and extant amount of risks lingering after the shock event. We'd be very, very surprised if Brexit is over in two days.

The possibility of continuing surprises (eg, anything acrimonious in the UK-EU relationship or within the two major UK political parties themselves) leaves us slightly bullish for the coming week. Foreign reserves will likely continue slow leakage but markets do seem slightly vulnerable if PMIs print a +ve surprise like March's. The CPI slowdown continues to give PBOC a chance to cut."