ForexLive European morning FX news wrap: Sterling falls on uncertainty surrounding Brexit saga Author: Justin Low | Category: News
Forex news from the European morning session – 21 March 2019
- SNB's Jordan: Negative rates to remain important instrument for the foreseeable future
- DUP's Wilson: Party not any closer to backing May's deal
- EU's Verhofstadt: Impossible for Brexit extension to go beyond 23 May
- UK February retail sales +0.4% vs -0.4% m/m expected
- SNB leaves sight deposit interest rate unchanged at -0.75%
- DUP's Wilson: I don't want this 'toxic' deal or the extension either
- Brexit: EU27 reportedly looking to insist on 22 May as extension date
- China says that imports, exports rebounded in March
- China confirms that Lighthizer and Mnuchin to visit on 28-29 March
- Corbyn to also travel to Brussels today to discuss alternative Brexit plans with EU leaders
- NZD leads, GBP lags on the day
- European equities mixed; E-minis down 0.2%
- US 10-year yields down 1.4 bps to 2.512%
- Gold up 0.2% to $1,315.50
- WTI down 0.7% to $59.80
- Bitcoin up 0.6% to $4,035
It's all about Brexit and the pound once again in Europe as the quid continues to suffer from a bout of uncertainty surrounding the whole Brexit saga as Theresa May is meeting up with European leaders in Brussels today. A combination of factors is basically weighing on the currency and contributing to further uncertainty/complications before 29 March.
First off, Labour leader Jeremy Corbyn is also headed to Brussels for discussions on 'alternative' Brexit plans. Then, we had DUP lawmaker Sammy Wilson saying that they still cannot support May's deal if put to a vote next week. Additionally, May's request for a 30 June extension looks set to be rejected as the EU wants the extension period to end before 23 May.
With May running out of time and potentially more complications to arise next week – parliament is tabling amendments on Monday – the pound is losing its upside allure and has fallen rapidly in London trade so far.
Cable began the morning around 1.3210-20 but quickly fell under the 1.3200 handle as a shorter extension date appears to be the way forward. Other headlines trickled in and that saw a steady decline towards the 1.3100 handle where price is trading just above now.
Other major currencies traded in a more uniform theme with the dollar recouping some losses from overnight trading as it held firm across the board following the Fed's slightly dovish tone yesterday. EUR/USD moved from 1.1420 to hit a low of 1.1384 and trades just under the 1.1400 handle ahead of US trading.
USD/JPY started the session on the back foot as the pair fell to a low of 110.30 with Treasury yields continuing to sink before recovering some poise to trade just above 110.50 now.
The aussie and kiwi remains the best performing major currencies on the day as they retain some gains from economic data releases during Asian trading. That said, those gains have been tempered with as AUD/USD fell from 0.7150 to 0.7130 now during the European morning.