Today’s Rates

GBP>EUR – 1.1652

GBP>USD – 1.3049

EUR>USD – 1.1199

GBP>CAD – 1.7393

GBP>AUD – 1.8446

GBP>SEK – 12.145

GBP>AED – 4.7921

GBP>THB – 41.460

GBP>ZAR – 18.560

This’s Weeks Calendar

·         AUD RBA Interest Rate Decision (Apr 2)

·         AUD RBA Rate Statement (Apr) 

·         USD Nondefense Capital Goods Orders ex Aircraft (Feb)

 

 Today’s Overview

  • GBP Brexit rumbles on.
  • EU Barnier No transition period unless the deal is approved.
  • Eyes on UK Construction PMI
  • Forex Today Aussie slips on RBA, UK PMI, Brexit news

 

Markets

 GBP

Cable took a knock after the UK’s Parliament disappointed by failing to pass any of the alternative proposals on Brexit. More votes are scheduled for Wednesday. Prime Minister May is reportedly looking to run her Withdrawal Agreement for a fourth time, though most political pundits suggest there simply isn’t sufficient support for it. A no-deal remains the legal default on April 12, but economists don’t think this will happen. Recent votes have shown that if there is one thing Parliament agrees on it is not to leave the EU without a new deal in place (the most recent vote being by a majority of 400 to 160). At the moment a new referendum is looking a lot more likely, though the situation remains highly fluid. The British Chambers of Commerce said that a “sharp slowdown” was being seen in the real economy as a consequence of Brexit uncertainty. Cable still remains above 1.3000 and Friday’s three-week low at 1.2977, though these look at the risk of being breached.

 World

The Dollar has regained an underlying bid concurrently with a sharp rise in Treasury yields over the last day and an ongoing risk-on sentiment in global markets. This drove EUR-USD to a four-week low of 1.1196. USD-JPY lifted to a two-week high at 111.45 in what is now the fourth consecutive session of gains, reflecting a continued softening bias in the yen as the latest wave of risk-on sentiment plays out. On Wall Street, the S&P rallied to six-month highs and is now within 2% of all-time highs, while the MSCI Asia-Pacific (ex-Japan) index rallied to seven-month-plus highs. Yesterday’s above-forecast manufacturing data out of both China and the U.S. have continued to resonate. In Australia, the RBA left policy unchanged as expected, while a subtle shift in tone in the statement was taken as a sign that the central bank is prepping for a dovish shift at its next review in May. This saw AUD-USD and AUD-JPY come off from respective highs

Source: XE Market Analysis Europe: Apr 02, 2019

This document has been prepared solely for information and is not intended as an Inducement with respect to the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited/Manor House Foreign eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result.  Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.

Pin It on Pinterest