Markets await Brexit vote

March 12, 2019

Quite a busy day coming up as markets gear up for the latest Brexit vote, while there is also some significant data due for publication.

The EUR/USD climbed overnight, thanks to a weakening USD. The pair opened the week at $1.12297 and remained flat early. Mid-session trading saw the euro climb to a high of $1.12578 before falling to lows of $1.12206. The euro rebounded off those lows in late trading, while it has started strongly in Tuesday trading and is currently at $1.12658. The GBP/USD performed strongly overnight, rallying for most of the day. The pair opened at $1.29647 and dipped to an early low of $1.29575. The pound hummed along near those lows in early trading before taking off mid-session. The pound surged to a high of $1.31697 late in the day and has surged even higher this morning. It is currently trading at $1.32394.

The Dow unshackled itself overnight, piling on the points in a solid session of trading. The index opened at 25,454.95 and was flat early, before dropping to a low 25,228.44 mid-session. The Dow bounced from there, surging to a closing hour high of 25,703.13. It has opened higher and is trading at 25,747.58. The Dax was also strong overnight, helped by a rallying Dow. The German index opened at 11,503.12 and dropped to an early low of 11,458.91. It surged from that point piling on the points as it closed at a high of 11,594.49.

The day ahead shapes up to be a crucial one, with the all-important UK parliamentary Brexit vote expected to occur overnight. The UK PM and EU leaders held a press conference a short time ago announcing that they had agreed to some legally binding changes to the Brexit deal. Whether these changes go far enough to sway enough UK politicians to vote for the deal remains to be seen.

Data released today includes:

Japan – BSI Manufacturing Index

Europe – French Final Private Payrolls, ECOFIN Meetings

US – CPI & Core CPI, NFIB Small Business Index, FOMC Member Lael Brainard speaks

Australia – Home Loans, NAB Business Confidence, RBA Assistant Governor Guy Debelle speaks

UK – GDP, Manufacturing Production, Construction Output, Goods Trade Balance, Index of Services, Industrial Production, NIESR GDP Estimate


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