Forex news from the European morning session - 7 March 2019
Headlines:
- Brexit: Nothing to suggest anything is going to change in talks over the next 48 hours
- UK PM spokesman says no plan for a third vote if May's deal is rejected next week
- EU said to be skeptical that Brexit deal can be sealed before 21 March summit
- Eurozone Q4 GDP final reading +0.2% vs +0.2% q/q second estimate
- BOE's Tenreyro: Smooth Brexit would mean small amount of tightening
- UK February Halifax house prices +5.9% vs +0.1% m/m expected
- China says it is 'totally reasonable' for Huawei to sue the US
- UK's Hammond: Negotiations with the EU are always difficult
Markets:
- NZD leads, GBP lags on the day
- European equities mixed, mostly lower; E-minis down 0.3%
- US 10-year yields down 1.1 bps to 2.683%
- Gold flat at $1,285.95
- WTI up 1.1% to $56.86
- Bitcoin flat at $3,845
It was yet another lackluster session in European morning trade today with headlines few and far between and markets eyeing the ECB meeting that is to come later. Most major currencies traded rangebound with price action rather limited, and the pound was the only notable mover as Brexit headlines trickled in during the late morning.
Cable traded around 1.3160-70 for the most part before being nudged lower towards 1.3130 as the impasse on the Brexit backstop continues to present a problem for the UK and the EU in negotiations.
At this stage, May is seen likely to lose next week's meaningful vote and even prospects of a delayed Brexit doesn't sound too optimistic in the near-term without any semblance of a deal in sight.
The rest of the major currencies did little with EUR/USD sitting in a 19 pips range on the day, hugging the 1.1300 handle ahead of the ECB meeting later. USD/JPY stuck around 111.60-70 for the most part with USD/CAD retreating slightly from resistance at 1.3145 to 1.3420 levels with oil staying underpinned.
The aussie and kiwi are a little stronger on short covering from Asian trading, with equities offering little direction as they stay slightly on the cautious side again. The lack of developments in US-China trade negotiations certainly isn't helping with that regard.
Looking ahead, all eyes will be on the ECB to kick some life into markets. Thereafter, hopefully North American traders can pick up the mantle and offer better volatility in what has been an otherwise subdued start to the trading day so far.
