A lack of economic data and events led to a quiet start into the new trading week. Most major currency pairs consolidated in a rather tight range, with Cable being the only exception. GBP/USD rallied on rumours that the ERG could support UK PM May tomorrow. However, this was misinterpreted in the beginning, as the ERG backing May´s deal is linked to a prerequisite that is unlikely to happen. Cable retraced most of its gains in the late London session.
The focus in the next 24 hours will be on the Brexit vote in the UK parliament. There is not confirmed time, but it is expected to happen between 7-9 PM local time. The market is expecting May to fail, and it does seem like the most likely outcome. Should that be the case, traders should brace for a spike in GBP volatility.
The two major safe haven currencies - JPY and CHF - caught a bid today, as weak Chinese trade data led to concern that the effects of the trade war are increasingly being felt in the real economy. The Australian Dollar came under pressure and closed the day below 0.72 support.
The Session Ahead:
The information provided here has been produced by third parties and does not reflect the opinion of AxiTrader. AxiTrader has reproduced the information without alteration or verification and does not represent that this material is accurate, current, or complete and it should not be relied upon as such. The Information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any particular trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.
Stocks soar, powered by first-rate earnings and a dazzling run of economic data; Gold plays catch as G10 falls flat while oil basks in the afterglow