ForexLive European FX news wrap: EU defer Brexit delay decision
Forex news from the European morning session - 25 October 2019
- Corbyn: We have got to get no-deal off the table
- European Commission: EU27 have agreed in principle on Brexit extension but no date set yet
- German government spokesperson: There is no need for fiscal stimulus package
- Germany October Ifo business climate index 94.6 vs 94.5 expected
- UK's Javid: If Labour doesn't support an election, we will bring the vote again and again
- Brexit: Labour's Abbott says may seek "further legislation in parliament" before backing an election
- UK's Javid: Budget is not happening as we're planning to dissolve parliament
- Chinese foreign ministry says Mike Pence made irresponsible comments about China
- China to ask US to remove tariffs in exchange for agricultural purchases in talks today - report
- AUD leads, NZD lags on the day
- European equities mixed; E-minis up 0.1%
- US 10-year yields up 0.4 bps to 1.77%
- Gold up 0.1% to $1,505.75
- WTI down 0.1% to $56.18
- Bitcoin up 1.7% to $7,585
It was a session filled with Brexit headlines for the most part but produced little notable action as we move towards North American trading.
The pound remains in focus as Labour is still playing coy about backing an election call as Johnson looks to push forward with that next Monday.
Meanwhile, the EU could not find a unanimous decision on the Brexit extension date and have deferred their decision to "the start of next week". It is likely they are also waiting on the events in London before understanding better on what to decide.
As a result of the bout of uncertainty, the pound eased during the session with cable slipping from 1.2855 to 1.2830 before holding around 1.2835-50 and then slipping late on to 1.2815 as we hit midday in the UK.
The euro got a bit of a boost from a slightly better Ifo outlook reading but EUR/USD remains relatively trapped in a narrow range (22 pips) today. Other major currencies aren't doing much as risk sentiment holds more steady ahead of the weekend.
The kiwi remains weak as gains from the past week continue to fold as sellers are looking to seize more control in NZD/USD. The pair fell from 0.6370 to 0.6356 during the session and is just off the lows at the moment.
Looking ahead, it's still all about the ebb and flow as we move closer to the weekend and barring any major surprises, it should be a more steady session overall.
If anything, I reckon just be wary of added weakness in the pound due to continued uncertainty and drag from the Brexit drama.