ForexLive Asia-Pacific FX news wrap: Pound stumbles to start the week
Forex news for Asia-Pacific trading on March 11, 2019:
- Fed's Powell: Patience means FOMC is in no hurry to change rates
- EU to increase Brexit divorce payment if the UK asks for extension
- China February CPI 1.5% y/y (as expected), PPI 0.1% y/y (expected 0.2%)
- China sets yuan reference rate at 6.7202 compared to 6.7200 at the last close
- Trump full budget to be released on Monday
- Japan M2 money supply +2.4% vs +2.4% expected
- China asks domestic airlines to ground Boeing 737 MAX
- Only two members of Cabinet still support Theresa May - report
- New Zealand Feb electric card retail sales +0.9% m/m vs +1.8% prior
- PBOC's Yi sees some room for RRR cut but not much
- Gold down $1 to $1297
- WTI crude up 30-cents to $56.37
- Nikkei 225 up 0.5% to 21130
- Shanghai Comp +1.2%
- JPY leads, GBP lags
The pound took a dive at the open after the UK rejected the EU offers and signs emerged that the EU is done playing nice. May appears to be heading towards Tuesday's meaningful vote with little chance of success and the vultures are circling. Still, if May abandons ship it doesn't exactly make the path forward any clearer. A second referendum wouldn't be a bad thing for GBP. In any case, the technicals are sour again today with the drop below 1.30.
EUR/USD wasn't moving much to start the week as it chopped around 1.1233.
USD/JPY was a bit more lively. It looked like a risk-off slump could be building as Tokyo ramped up but the selling abruptly stopped well ahead of Friday's low and it's rebounded to flat.
The commodity currencies faced some pressure early on as AUD/USD sank to 0.7020 but it bounced to 0.7038 as it wedges .
Have a great trading week. It was a pleasure to sit in today for Eamonn. He's back tomorrow.