Forex news from the European morning session - 5 April 2019
Headlines:
- European Commission: Brexit delay to only be decided at summit next week
- UK PM spokesman: Government talks with Labour party continuing today
- Nothing has been decided yet on extension plans, says EU source
- Full letter of May's request to extend Brexit to 30 June
- May's letter proposes Brexit extension until 30 June 2019
- UK March Halifax house prices -1.6% vs -2.8% m/m expected
- Germany February industrial production +0.7% vs +0.5% m/m expected
Markets:
- EUR, AUD leads, NZD lags on the day
- European equities mixed; E-minis up 0.1%
- US 10-year yields up 2 bps to 2.535%
- Gold down 0.2% to $1,290.18
- WTI down 0.2% to $62.00
- Bitcoin up 2.5% to $4,964
It was a quiet session as markets were stuck in limbo in preparation for the release of the US jobs report later at 1230 GMT. Currencies were mostly trapped in a narrow range as equities and bonds failed to provide much direction for traders as well.
The pound was arguably the notable mover with cable rising from 1.3090 to a high of 1.3123 on reports that Tusk looked set to offer the UK a 12-month extension next week. Those gains were tempered with as the morning continued with cable falling to 1.3090-00 levels again.
That's when Theresa May issued a letter seeking a Brexit delay to 30 June and the pound has been tracking a little lower since then. Cable is now trading near session lows currently near the 1.3060 level.
Other major currencies remain trapped in relatively narrow ranges but the past hour saw the loonie dip a little with the Canadian jobs report also in focus later today. USD/CAD made its way higher from 1.3360 to 1.3380 levels currently.
Meanwhile, other major currencies were mostly rangebound and despite the kiwi sitting at the bottom of the pile, NZD/USD only rests in a 31 pips range thus far. EUR/USD remains subdued around 1.1220-30 levels as the pair holds a 18 pips range ahead of the non-farm payrolls release later.
