Forex news for New York trade on January 12, 2019:
- Cable jumps on report that pro-Brexit conservatives will vote with May on Tues
- Theresa May said to consider a firm end-date to win over MPs
- What time will the meaningful Brexit vote take place?
- PM May spokesperson: Will address party leaders later this evening.
- All 40 economists polled by Reuters expect Brexit deal to lose tomorrow's vote
- Fed's Clarida: US economy has good momentum going into 2019
- Day 23 of the government shutdown: Bipartisan Senate group forms in search for solution
- Yellen: It's possible we've seen the last hike of the cycle
- Canada Teranet house price index +2.5% y/y vs +3.1% prior
- China sentences Canadian man to death in drug case
Markets:
- Gold up $4 to $1291
- WTI crude down 95-cents to $50.64
- US 10-year yields flat at 2.70%
- S&P 500 down 14 points to 2582
- JPY leads, AUD lags
It's all about the pound with the big vote less than 24 hours away. The big move of the day was a mistake. A report crossed saying the hardline ERG Brexit group could vote with May but the actual report said they would only do it if an amendment from Hilary Benn succeeded, something which is unlikely. Cable popped to a high of 1.2930 initially but faltered back to 1.2875 within 30 minutes and eventually down to 1.2850. There were too many headlines to fully recap but the overall thrust was that the early optimism stalled late.
The general theme on the day was sideways movement. The euro shopped around in a 1.1450-1.1480 range and finished in the middle.
USD/JPY started North American trade near the lows but chopped higher to 108.36 on fixing demand then faded back to 108.17.
AUD/USD was generally in an upward track in North American trade as it clawed back its Asian losses to finish near 0.7200.
The Canadian dollar touched a six day low in a modest move against the US dollar. Chinese growth concerns weighed on the loonie along with oil and a disappointing housing report from Teranet. USD/CAD rose as high as 1.3298 before slipping back to 1.3275.
