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Good day, everyone! Hope you're all doing well as we get things going here on the session. The pound is the key mover on the day as it rises on hopes that Theresa May will delay Brexit and potentially rule out a no-deal outcome in her statement later today. Meanwhile, the yen is also holding firm as trade optimism begins to fade and India-Pakistan tensions aren't really helping with sentiment seen in Asian equities earlier.
Other major currencies are trading more narrow on the day with the aussie and loonie holding slightly weaker as we begin the European morning. The euro is still trading rangebound for the most part with markets also keeping an eye on Fed chair Powell's testimony to come later in the day.
Looking ahead, we'll have BOE's hearing with the Treasury select committee on the inflation report as one of the key items on the agenda. However, I wouldn't expect that to be a market mover considering that the central bank is going to just be talking about the same things mentioned earlier in the month after its monetary policy meeting.
Brexit risks will take center stage as we move towards the afternoon and US trading so expect most of the volatility to be contained to pound pairs as well as the dollar and yen with risk also part of the ebb and flow in trading today.
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