UK lawmakers pass Brexit extension

March 15, 2019

Brexit has taken its latest turn while a stack of data rounds out the week.

The EURUSD weakened overnight after opening the session at $1.13253. The pair climbed to an early high of $1.13367 before falling away to $1.13114. A sharp spike back up to $1.13353 was met by a bigger fall as the euro fell to a low of $1.12932. It remained near those levels and is currently trading at $1.13062. The GBPUSD opened at a high of $1.33357 and fell to $1.32389 early in the day. A brief climb up saw the pound hit $1.33303 before falling to lows of $1.32059 shortly afterwards. It ebbed and flowed throughout late trading and in early Friday trading is currently siting at $1.32553.

The Dow traded in a fairly tight range on Thursday, taking a breather from the rally that it went through the previous session. The index opened at 25,710.06 and was steady in early trading, before a brief climb up saw it peak at 25,794.99. The Dow gave up all of those gains in the hour after the peak and went further as it hit lows of 25,616.94. Those losses were quickly corrected as the Dow erased most of those losses. It is currently trading at 25,723.09. The Dax looked promising after opening the day st 11,568.74. The German index rallied to an early high of 11,639.43 before an even quicker sell-off saw it fall to lows of 11,537.79. the Dax then climbed back up to 11,624.77 before spending the rest of the session in a gradual decline, closing at 11,583.81.

The day ahead shapes up as an important one, particularly for the UK. Lawmakers overnight voted to extend the Brexit deadline until the end of June as the parliament continues to disagree over Brexit. This proposal now has to go to EU lawmakers for their unanimous approval. Whether they can come to an agreement, considering they haven’t been able to agree on a deal in the last two years, remains to be seen.

Data released today includes:

Canada – Manufacturing Sales

China – Foreign Direct Investment

UK – Consumer Inflation Expectations, CB Leading Index

Europe – German WPI, European Final CPI and Final Core CPI

Japan – Monetary Policy Statement, BoJ Policy Rate & Press Conference, BoJ Governor Haruhiko Kuroda speaks

US – Empire State Manufacturing Index, Capacity Utilisation Rate, Industrial Production, TIC Long-Term Purchases, JOLTS Job Openings, Prelim UoM Consumer Sentiment & Inflation Expectations


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