ForexLive European morning FX news wrap: Pound goes for yet another spin on the Brexit wheel

Author: Justin Low | Category: News

Forex news from the European morning session - 26 March 2019

Headlines:

Markets:

  • GBP leads, JPY lags on the day
  • European equities higher; E-minis up 0.5%
  • US 10-year yields up 4.7 bps to 2.446%
  • Gold down 0.6% to $1,313.45
  • WTI up 1.2% to $59.54
  • Bitcoin up 0.3% to $3,898

EOD 26-03
The pound was the most active currency in the European morning as it gets taken for a ride aboard the Brexit roller coaster. It started with the DUP reiterating that they're nowhere near backing May's deal and that sent the quid lower with cable falling from 1.3190 to a low of 1.3158 at the start of the session.

But the pair was supported from yesterday's low of 1.3160 before consolidating around 1.3200 and then receiving a push from Jacob Rees-Mogg echoing his overnight stance (potential softening) which was backed by Iain Duncan Smith and Michael Fabricant.

Cable jumped to a high of 1.3251 but then settled back to around 1.3230 currently as those remarks offers May's deal a tiny glimmer of hope. The numbers are still stacked against her at the moment but at least it isn't sure-fire dead for the time being.

The other main mover of the session was the yen as it got taken lower on the back of a recovery in bond yields. 10-year Treasury yields are up by nearly 5 bps and that is providing a relief for yen pairs with USD/JPY looking to break out as it trades at the highs around 110.40 now, just under the 100-hour moving average.

Besides that, other major currencies saw more subdued price action with trading ranges still relatively narrow. EUR/USD is relatively unchanged on the day as the pair sits in 23 pips trading range with traders waiting on Wall Street to confirm the risk recovery mood.

AUD/USD sits higher as buyers continue to keep up the near-term bullish momentum but large expiries at 0.7000 and 0.7045-50 is helping to limit price movements as the pair traded around 0.7115-35 on the session.

WCRS 26-03

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