GBP>EUR – 1.1692
GBP>USD – 1.3130
EUR>USD – 1.1229
GBP>CAD – 1.7502
GBP>AUD – 1.8452
GBP>SEK – 12.191
GBP>AED – 4.8221
GBP>THB – 41.714
GBP>ZAR – 18.640
- EU Unlikely to grant short Brexit extension unless MP’s approve deal by 11/4
- EU Juncker No deal Brexit is more and more likely on 12/4
- GBP Still guided by politics and Brexit
- China Stellar PMI’s look to an improving outlook
Cable rallied by over a big figure to levels above 1.3150. The rally was sparked by Prime Minister May surprising onlookers by announcing that she would work with Labour opposition leader Corbyn to find a workable compromise, which sparked a rally in sterling as any compromise between the two would mean a further delay in Brexit and, almost certainly, the UK remaining in the EU’s custom union. The situation remains fluid, and Parliament will later today be debating a range of proposals aimed at trying to establish, once again, if a viable way forward that could command cross-party consensus.
The Dollar and Yen have been weakening against most currencies as a risk-on sentiment continued to course through global markets. Wall Street rallied from lows during its PM session, while The MSCI Asia-Pacific (ex-Japan) equity index rallied over 0.5% today in printing a fresh seven-month high. Oil prices have continued rise, with the WTI future posting a fresh five-month high of $62.90 while the Brent benchmark zoned-in on $70. China released forecast-beating services PMI data, which rose to 54.4 in March from 51.1 in the month prior, while White House adviser Kudlow spoke of “headway” in trade talks with Beijing. EUR-USD, meanwhile, lifted back above 1.1200, putting in some more space from the four-week low seen yesterday at 1.1183. EUR-JPY ascended into two-week high terrain. USD-JPY also edged out a two-week high, at 111.55, with the Japanese currency managing to beat the dollar in the biggest loser stakes. The Aussie Dollar outperformed, rallying by over 0.6% and 0.8%, respectively, against the U.S. Dollar and Yen. AUD-USD posted a two-day high at 0.7117. Positive China sentiment and good domestic data lifted the Aussie. Australian trade data showed a bigger than expected surplus, of A$4.8 bin in February, while retail sales beat forecasts with 0.8% m/m growth in February.
Source: XE Market Analysis Europe: Apr 02, 2019
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