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In the FX market, the pound sterling continues to rally as Theresa May takes over the reins as Prime Minister. The fact that she has made it clear that she won’t rush to push the Brexit button has helped clouds to dissipate in the short-term and allowed the pound to rally for a fourth day in row, up to $1.33, while it was still trading at around $1.29 last Friday.However, the pound’s upside potential may be limited as the BoE is expected to cut its benchmark interest rate on Thursday. GBP/USD traded range bounded in Tokyo between 1.3225 and 1.3338 as it tumbled on the 1.3350 resistance area (previous highs from early July).In Japan, the yen stabilised after rallying roughly 4% over the last three days. We expect the Japanese yen to resume its freefall as traders keep buying back their short positions and investors adjust their positioning ahead of the BoJ meeting at the end of July.USD/JPY edged down 0.50% to 104.42 after hitting 104.99 in Wall Street.
