ForexLive Americas FX news wrap: May's Brexit deal defeated

Author: Adam Button | Category: News

Forex news for North American trade on March 12, 2019:

Markets:

  • Gold up $8 to $1301
  • WTI crude up 12-cents to $56.91
  • US 10-year yields down 4.4 bps to 2.59% (lowest since Jan 4)
  • S&P 500 up 8 points to 2791
  • NZD leads, GBP lags
It was a headline-heavy day with Brexit as the focus. US traders arrived to news that AG Cox had some worries about the deal and that set off a wave of speculation (later proven to be correct) that the DUP and ERG would reject it. Cable dropped to 1.3005 from 1.3200. It bounced back above 1.31 ahead of the vote then squeezed higher after May announced a no-deal vote Wed and extension vote Thurs and hit 1.3144 before a fresh slide to 1.3064.

In general the US dollar was soft and that allowed the euro to rise to 1.1305 in a choppy grind higher before some late selling dragged it back to 1.1286.

The Canadian dollar was boosted on oil alongside lower EIA US production forecasts, an OPEC extension and Iran sanctions chatter. USD/CAD was down 30 pips to 1.3362 with a close near the lows.

US CPI was on the soft side with ex-food and energy missing as the reversal in the fortunes of inflation continues. it had a modest effect on USD/JPY. The spot to watch may be bonds as yields tick towards the early-Jan spike low.
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