ForexLive European morning FX news wrap: Sterling stays on the see-saw; markets steady

Author: Justin Low | Category: News

Forex news from the European morning session - 15 March 2019

Headlines:

Markets:

  • NZD leads, CHF lags on the day
  • European equities higher; E-minis up 0.4%
  • US 10-year yields flat at 2.63%
  • Gold up 0.6% to $1,303.82
  • WTI down 0.1% to $58.54
  • Bitcoin up 0.7% to $3,878

EOD 15-03
The flurry of Brexit headlines has dissipated following yesterday's extension vote as the UK now prepares for a third meaningful vote that is expected to take place next Tuesday. The idea behind the date is that it gives May enough time to squeeze lawmakers to vote for her deal but should that fail, there could potentially be a session for deciding on alternatives in order to give the European Union a reason to extend the Brexit deal when EU27 leaders gather in Brussels on Thursday.

That said, it wasn't a factor in moving the pound today but we did see an early dip in the quid whereby cable fell from 1.3240 to a low of 1.3203 where it tested key near-term support once again, before rebounding back to 1.3260-70 levels seen currently. It's going to be very much a case of choppy price action for the pound now up until there is more clarity for traders on the Brexit situation.

The rest of the major currencies bloc held steady with the aussie and kiwi holding on to gains from Asian trading, boosted by comments from China pledging to bolster its economy. AUD/USD tested a high of 0.7093 but backed off towards the 0.7070-80 level as key near-term resistance is still preventing a break of the 0.7100 handle.

EUR/USD also saw a more calm session as price ranged between 1.1315-30 with large expiries weighing on price action today. There's about €4.5 billion worth sandwiched between 1.1300-25 and is causing for a lack of movement in the pair ahead of US trading.

Looking ahead, be wary of the gains seen in the equities space as it could translate into a more risk-on mood. Other than that, there isn't much for markets to work with so we could potentially see a more calm end to the week from hereon.
 
WCRS 15-03

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