Today’s Rates

GBP>EUR – 1.1595

GBP>USD – 1.3083

EUR>USD – 1.1282

GBP>CAD – 1.7472

GBP>AUD – 1.8285

GBP>SEK – 12.111

GBP>AED – 4.8045

GBP>ZAR – 18.200

Today’s Calendar

·         CNY Consumer Price Index (YoY) (Mar)

·        GER Harmonized Index of Consumer Prices (YoY) (Mar)

 

Today’s Overview

  • GBP Not impressed by Brexit extension? (Rabobank)
  • USD Fed on hold? (Nordea markets)
  • USA/CHINA Talks continue on legacy issues.
  • EuroZone Economists lower inflation and growth forecasts – ECB Survey

 Markets

 GBP

The Pound has settled lower after rallying late yesterday on news that the EU agreed to delay Brexit again. Cable pulled back under 1.3100 after leaving a high at 1.3120. The EU permitted a flexible Brexit delay, limited to October 31. The UK must hold elections for the European Parliament on May 23 or else leave on June 1 without a deal, while the UK would be able to leave the EU ahead of the October deadline should a deal be ratified. Brussels re-stated, for the umpteenth time, that the Withdrawal Agreement would not be reopened for renegotiation. The risk is apparent to most who have been following the Brexit process too far; that the delay won’t fix the political gridlock and we simply arrive at October 31 — already being dubbed the Halloween deadline in the UK media — in the same state as now, without a solution. This backdrop will likely leave the Pound, which analysists estimate is still trading with a 10-11% Brexit discount, on a neutral directional footing for now.

 World

The forex markets have been lacking a directional theme so far today. EUR-USD has been plying a narrow range in the upper 1.1200s, holding below yesterday’s 12-day high at 1.1287. USD-JPY has settled near 111.0, above the 12-day low of yesterday, at 110.84. The Australian Dollar, which has been a recent outperformer, came under modest pressure after the Australian prime minister called a national election for May 18. In equity markets, Asia bourses flagged as investors mull signs of slowing global growth on the one hand versus accommodative central banks on the other.

 Source: XE Market Analysis Europe: Apr 11, 2019

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