Forex news for NY trading on March 25, 2019.
- Slow start to the week. Little change in the major indices after an up and down day
- It's tough to see any way out of the Brexit mess
- US crude oil futures settle at $58.82
- Freeland: Metals tariffs raise questions for Canadians about ratifying USMCA
- There is no doubt the US curve is inverted now
- Bercow selects the Letwin amendment for a vote
- DUP: Why would the PM ever expect us to give support to a deal based on a lie
- Michael Avenatti arrested and charged wire/bank fraud connected to extorting Nike
- PM May Spokeman: Parliament has expressed a cler view on opposing no-deal Brexit
- European shares end with modest gains/losses
- May: There is still hope to bring back a vote in this House
- Start by doing the nesessary, and then the possible. Before long you will be doing the impossible.
- Dallas Fed manufacturing index +8.3 vs +9.0 expected
- What's priced in for the Federal Reserve
- UK cabinet considered general election scenarios - report
- May's spokesman: Gov't position is to only hold MV3 if there is a prospect of success
- Chicago Fed February national activity index -0.29 vs -0.43 prior
- The AUD is the strongest. The GBP is the weakest.
In other markets:
- Spot gold, +$8.26 or 0.63% at $1321.95
- WTI crude oil, -$0.04 or -0.07% at $59
- Bitcoin fell -$81 at $3877.69 (see Bitcoin makes a break for it)
In the US and European stock markets, the changes were very modest across the board. With the exception of the UK FTSE (-0.42%) and Spain's Ibex (-0.21%), the major indices had changes of -0.18% to +0.06%. That has to be one of the "meh" days in a long time.
In the US debt market, yields are lower agina with the 2 year losing the most ground (-6.1 bps). The 30 year was down, but only fractionally.
In Europe, German yields remained below 0.0%. 10 year yields overall were mixed.
The markets today had limited news in the form of economic news. The Chicago Fed national activity index was higher than last month but still negative. The Dalllas Fed Manufacturing index came in below expectations.
Over the weekend, the Mueller report exonerated the Pres Trump of a Russian probe, which had limited impact on the markets. Other than that, when the other US news is that Stormy Daniels lawyer (remember the porn star) Michael Avenatti was arrested and charges with wire/bank fraud, hours away from what was to be his bombshell on Nike, you know the day is void of news (at least in NA).
Of course, the Brexit saga continues, and although the GBP is ending the day as the 2nd weakest of the major currencies, the market seems tired from the twists and turns with little in the way of progress.
Adam had a great summary of the options that all seem to be pointing to a big mess (see: "It's tough to see any way out of the Brexit mess"). There will be meetings and attempts to sway votes, but will anything get done with PM May at the helm? And then, will anything get done with the "next in charge" (or after a new election or after a new referendum). Although the GBP moved down against the NZD, AUD, CAD and CHF, it had more modest changes vs the JPY, EUR and USD (down -0.09%). The market is tired of the mess and jockeying that is going no where.
Below are the % changes of the major currencies vs each other
The NZD and AUD attracted more buyers (the best of the worst). The JPY fell despite lower yields and unchanged-ish stocks. Typically those changes are the exact opposite but it was that kind of Monday in the forex market.
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