The dollar strengthens against yen and euro, UK parliament to take over Brexit plans
Laurence Hayward | March 27, 2019
The dollar is stronger against the yen and the euro. The UK Parliament will take the Brexit reins today, allowing indicative votes to evaluate alternatives to PM May’s plans. Asian stocks were mixed.
“The action is best that secures the greatest happiness for the greatest number.”William Dean Howells
March 27, 2019
EUR/USD 1.1259 GBP/USD 1.3213 USD/CAD 1.3411 AUD/USD 0.7084 USD/JPY 110.49 USD/CNH 6.7330 USD/ILS 3.6329 USD/MXN 19.2992 USD/CHF 0.9953 USD/INR 68.8750
The dollar is mixed against the other currencies. Stephen Moore, Trumps nominee to join the Fed, said that the rate hike in December was “inexplicable” and the Fed should cut rates by a ½% immediately. Mary Daly of the San Francisco Fed said, “patience was the way to go”. The House lost a vote to veto President Trump’s national emergency declaration to fund the border wall. US stocks are lower this morning.GBP
The UK Parliament will take over control of Brexit today. They will allow indicative votes on Brexit alternatives compared to the PM’s proposals. The votes will be non-binding, but they could put pressure on the government to change its position. The PM will meet with members of the 1922 Conservative committee to try to garner more support for her deal – perhaps support in exchange for her resignation.EUR
ECB head Mario Draghi, speaking to an audience in Frankfurt, said the domestic economy was resilient, and the ECB has instruments to help them reach its goals. The euro is slightly lower following the trend of the last 5 to 6 days.
Turkish short-term borrowing costs have sky rocketed over 40 fold in the last 3 days.CAD
The Canadian dollar is lower as oil prices declined this morning. New Zealand's dovish comments on interest rates did not help. The Canadian Trade balance improved was still -4.25 bln in January.ASIA/PACIFIC
Most Asian stock markets are higher with the exception of Japan. Chinese data showed industrial companies are off to their worst start to the year in a decade.
The Reserve Bank of New Zealand left interest rates unchanged, and in a dovish statement, said the next move could well be lower.
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