Sterling a little on the back foot ahead of European markets open

Author: Justin Low | Category: News

Does this currency snapshot look familiar?

WCRS 29-01
ForexLive
That's because it's pretty much a mirror of what we experienced ahead of European trading yesterday too. Funny, eh? Well, the kiwi is once again leading from the front trading near the highs now boosted from a slightly stronger PBOC fix on the yuan The aussie is the other main mover so far recovering after having fallen to a low of 0.7138 against the dollar on the back of poor business confidence/conditions data earlier.

Risk sentiment remains rather tepid but has improved in the past hour so that will help to calm some nerves ahead of European trading. Nonetheless, equities are displaying cautious tones more than anything else so be wary of the gains seen in the kiwi to start the day as we could see a similar reversal later in the day.

But the main currency in focus today will be the pound as we look towards the Brexit amendment votes set to take place in parliament. Uncertainty is plentiful so expect the quid to bounce around on headlines/rumours related to the amendments during the session ahead. The votes are scheduled some time in the evening around 1900 GMT but depending on the order of business, they could take place earlier or later.

Other major currencies are trading rangebound and I would expect that to remain until we have clearer direction on risk later on in the day. Still to come on the week is US-China trade talks in Washington, the Fed meeting, Chinese PMI data, more big name corporate earnings, and US non-farm payrolls so expect more movement in the coming days.

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