Brexit uncertainty leaves the pound range bound as markets await a breakthrough in negotiations
April 16, 2019
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April 16, 2019
EUR/USD 1.1298 GBP/USD 1.3070 USD/CAD 1.3372 AUD/USD 0.7173 USD/JPY 111.95 USD/CNH 6.7137 USD/ILS 3.5685 USD/MXN 18.9786 USD/CHF 1.0062 USD/INR 69.6050
USDThe dollar looks to Industrial Production data and the NAHB housing market index data to provide some direction after starting the week on the back foot yesterday. Boston Fed President Eric Rosengren said that the Fed should let inflation run above 2% in good times in order to retain the ability to fight economic downturns. European negotiators have been given the green light to start trade negotiations after a threat of new tariffs. They are targeting a deal by September.GBPThe pound remains range bound due to the lack of progress in the UK Parliament to break the Brexit deadlock. Strong UK wage growth data provided some support for the pound, and the pair looks forward to US Industrial Production and NAHB Housing Market Index data released today.EUR
The euro rose slightly on bearish sentiment for the greenback and mixed data out of the Eurozone. The German ZEW Economic Sentiment indicator improved from 3.1 vs. the -3.6 expected. The same indicator for the Eurozone as a whole came in at 4.5 from -2.5 vs. the expectation of 1.2. ZEW President Wambach stated that “the slight improvement is largely based on the hope that the global economic environment will develop less poorly than previously assumed.”CAD
The loonie continues to trade sideways as oil prices rally, but gains are offset by growing speculation for rate cuts by the Bank of Canada. Markets look to inflation data due Wednesday and retail sales figures on Thursday to provide direction for the Canadian dollar.ASIA/PACIFIC
AUD is today’s weakest major currency after the Reserve Bank of Australia’s minutes discussed a potential rate cut, making this week’s employment data and next week’s CPI that much more important.
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