BREXIT related risk continued with UK’s sovereign rating downgraded from AAA to AA and Sterling fell to a new low by 3.5% to close at 1.3214.

Highlights of today’s FX Daily as follow:-

·         BREXIT related risk continued with UK’s sovereign rating downgraded from AAA to AA and Sterling fell to a new low by 3.5% to close at 1.3214. ·         We feel the upside potential for EUR remains limited given the BREXIT impact on EU’s economy is still unclear, with the downside on Sterling is wide. ·         On USD/JPY, we continue to envisage a trading range of 100-106.8 with BOJ watching closely with a “sense of urgency” to act if it dips below 100. ·         We expect USD/MYR to be trade in a tight range of 4.08-4.15 due to lower volatility with 3YMGS/2YUST interest rate differential favouring Malaysia and a relatively stable cross SGD/MYR. Much depends on CNY fixing, expected to stay below 6.650 today.