Today’s Rates

GBP>EUR – 1.1568

GBP>USD – 1.3062

EUR>USD – 1.1291

GBP>CAD – 1.7442

GBP>AUD – 1.8306

GBP>SEK – 12.118

GBP>AED – 4.7983

GBP>ZAR – 18.270

Today’s Calendar

·         USD Michigan Consumer Sentiment Index (Apr)

 

Today’s Overview

  • GBP Continues to consolidate
  • Germany Business expectations point to continued weakness in Manufacturing
  • China Trade data (Mar) solid rebound in exports
  • Gold Consolidates just above weekly lows

 Markets

 GBP

The Pound has continued to trade neutrally on the net with the flexible extension of the Brexit process, with a deadline of October-31, having taken Brexit off the “of-immediate-concern” list with the UK having, for now, avoided a disorderly no-deal exit from the EU. UK Prime Minister May has urged MPs to reflect on Brexit over the Easter holiday, which has invited her critics to suggest that she is the one who should be reflecting given her intransigence to finding a workable compromise in Parliament. The government and Labour will continue to try and find a compromise, though it’s not looking likely that May is willing to pay the price of splitting her Tory party that striking a deal with Labour would entail. May is coming under fresh pressure to resign, though a Tory leadership challenge at this juncture, which would take months, would not solve anything. Given recent and past form, there is evidently a risk that the Brexit delay won’t fix the political gridlock and we simply arrive at October 31 — dubbed the Halloween deadline in the UK media — in the same state of irresolution. But, attitudes in the EU are hardening, and UK public opinion has shifted in favour of there being another referendum on EU membership.

 World

A strong bid for EUR-JPY was seen at and after the Tokyo fixing today, which drove the Euro generally higher while leading to Yen underperformance. Interbank market narratives pointed Japan’s Mitsubishi UFJ Financial Group’s purchase of aviation financing business of Germany’s DZ Bank as being behind the demand. EUR-JPY rose over 0.5% in making a three-week high at 126.33, while USD-JPY was pulled up by about 0.2%, to a four-week peak at 111.85. EUR-USD concurrently gained, too, rising to a 16-day peak at 1.1294, extending a rebound from yesterday’s 1.1250 low, which had been the product of a generally firmer Dollar following the release of warmer than expected U.S. PPI data.

Source: XE Market Analysis Europe: Apr 12, 2019

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