ForexLive European morning FX news wrap: Sterling creeps higher as long Brexit extension seems inevitable

Author: Justin Low | Category: News

Forex news from the European morning session - 10 April 2019

Headlines:

Markets:

  • AUD leads, CHF lags on the day
  • European equities higher; E-minis up 0.2%
  • US 10-year yields flat at 2.50%
  • Gold flat at $1,303.90
  • WTI up 0.6% to $64.40
  • Bitcoin up 0.5% to $5,248

EOD 10-04
Markets were once again generally quiet but the pound is among the notable mover as it creeps higher ahead of the European Council summit in Brussels later. European leaders look set to grant the UK a long Brexit extension, with Merkel's comments moments ago acting as a dead giveaway which helped cable to near the 1.3100 handle.

The pound was mostly steady on the session as cable held higher around 1.3070-80 levels following an upbeat February GDP data, which was boosted by Brexit stockpiling. But it was only as we approached London midday did the pound gain further momentum to the upside as cable also breaks above the 200-hour moving average.

The aussie was also a notable gainer as short covering helped to see AUD/USD rise from 0.7130 to a high of 0.7158 where it trades just under currently. Price is looking to challenge a break above the 100-day moving average so be mindful of that ahead of the daily close today.

The euro also crept slightly higher in anticipation of the ECB meeting to come, with the dollar holding weaker. However, EUR/USD maintains a narrow trading range of 25 pips as it inched higher from 1.1260 levels to near 1.1280 at the moment.

Other major currencies remain more subdued with USD/JPY barely moving on the session as risk sentiment remains cautiously optimistic ahead of US trading.

Still to come, we'll have the US CPI report for March as well as the FOMC meeting minutes to go alongside the ECB and Draghi's press conference momentarily.

WCRS 10-04

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