Dollar strengthening continues, UK parliament fails to agree on indicative votes
Laurence Hayward | March 28, 2019
The trend for the dollar to strengthen is still in place. The UK Parliament failed to agree on indicative votes for Brexit consensus. US-China trade talks have circled back to intellectual property rights.
“It is best to act with confidence, no matter how little right you have to it.”Lillian Hellman
March 28, 2019
EUR/USD 1.1221 GBP/USD 1.3082 USD/CAD 1.3431 AUD/USD 0.7072 USD/JPY 110.76 USD/CNH 6.7474 USD/ILS 3.6271 USD/MXN 19.3994 USD/CHF 0.9965 USD/INR 69.3400
The dollar is generally slightly stronger. Yesterday, Ester George of the Fed said the Fed can be patient on interest rate policy as downside economic risks are possible, and slowing growth in China adds to the negative picture. She said that inflation is not a problem at the moment, and thinks GDP will slow to 2% this year. In the meantime, trade talks with China have run into the old issue of intellectual property rights. Trade tariffs are being reviewed by the Trump administration. Q4 GDP slowed to 2.2% from 2.6%.GBP
The UK Parliament failed to agree on the indicative votes on a number of proposals which would have created a clearer picture on how to proceed forward with Brexit. It was hoped the votes would produce a consensus. PM Theresa May’s threat to step down and not be part of the trade negotiations caused a number of conservative MPs to back her plan.EUR
ECB head Mario Draghi said yesterday that the ECB would will soften the impact of negative interest rates on some parts of the EU economy. He also said the EU economy is pointing to contraction, which means a continued accommodative approach is appropriate. This morning’s economic confidence for March rose to 81.9 from 79.4.CAD
The Canadian dollar is lower again as oil inventories rose in the US weekly report. A further fall in oil could push the Canadian rate up through a key resistance level of 1.3450.ASIA/PACIFIC
The Indonesian rupiah fell with other emerging market currencies. The Indonesian central bank is buying its currency to support the rupiah. The US-China trade talks seem to be making some progress. Asia stocks sold off.
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