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The market has been mostly quiet this week and a lot of that could have something to do with not wanting to be making any big decisions ahead of today’s event risk. The big focus on Wednesday will be the Fed decision late in the day, with not much else going on ahead of the event risk. read report
We’re coming out of a quiet Monday session and have continued with the consolidation into Tuesday. Even the Pound, which had been a mild underperformer in a sea of what was broad US Dollar weakness, has recovered back up to where it had been trading ahead of its Monday decline, brought on by uncertainty around next steps for Brexit. read report
Monday’s economic calendar is thin and most of the price action we’re seeing as the week gets going, is a catch up reaction to the way things settled on Friday, with the Buck selling off a bit, and global equities firmer. read report
If we look at the performance in the major currencies since the weekly open, with the exception of the Pound, all are confined to well within 1% of weekly opening levels. Still, the broad direction has been Dollar bearish, perhaps having something to do with the softer round of inflation data out of the US this week. read report
The early Thursday round of China data hasn’t had much influence on financial markets after the data came in mixed overall. Global equities have been resilient in 2019, though we have seen the emergence of selling pressure in recent days. Looking ahead, we get German CPI, US initial jobless claims and new home sales. read report
There has been a lot of fluffy positive talk around US-China trade deal progress, though the reality appears to be much different. On Tuesday, we heard from the US trade representative, who said the outcome of US-China trade talks remains uncertain with “major, major issues that have to be resolved.†UK vote to reject no-deal Brexit at 19GMT. read report
The Pound has been well bid into Tuesday, after the late Monday news the UK and EU have agreed on a legally binding amendment to the Irish backstop. Attention now shifts to the anticipated UK vote, to see if this new deal will be good enough to pass. Today’s economic calendar features first tier UK and US data. read report
We’re coming out of a Friday session of trade that did a good job knocking the US Dollar back down against most currencies, with the discouraging NFP print fueling most of the Buck’s declines. This was also accompanied by more risk off flow, which accounted for the Yen gains and a US equity market that remained weighed down into the weekly close. read report
We’re into the month of March as the week comes to a close. Looking at the overall price action since the weekly open, it’s been a mixed bag, with the Pound, Euro and Swiss Franc up against the Buck, while Cad, Aussie, Yen and Kiwi are lower. Plenty of economic data out on Friday across the Eurozone, UK, Canada and US. US core PCE will be a highlight. read report
Optimism around a US-China trade deal has been scaled back in a big way since the weekly open. This has invited downside pressure in the equity markets, while softer China PMI reads are adding to the deterioration in sentiment. On the FX front, the Pound continues to outperform on the significant reduction in tail risk associated with Brexit. read report
