• The main focus in the markets remains around Brexit developments and its potential impact on financial markets, which remained contained in UK assets, so far. Yesterday, the UK Parliament voted to take a no-deal scenario off the table, allowing the GBP to appreciate further. Following this, a vote to extend Article 50 will take place later today while May’s new strategy is to hold a third vote on her Brexit plan for next week. Against this backdrop, GBP volatility is expected to remain as May continues to face a challenging context for her plan, with the March 29th Brexit deadline fast approaching.
  • Although market sentiments have being calm recently, trade fears returned to the forefront after the US announced that the highly expected Trump-Xi Summit will be delayed beyond March. Despite this, US equity indices were broadly flat today and the upward trend on European equity markets remained. In Asia, Chinese equity indices fell amid the release of disappointing industrial production data and the uncertainty in China-US negotiations.
  • Sovereign core yields slightly rose: the US Treasury 10Y yield approached the 2.64% level ahead of next week’s Fed meeting. In this vein, the German 10Y Bund yield increased despite both the slightly lower-than-expected German final inflation data and the cut in German economic growth forecast for 2019 by Ifo institute. Peripheral risk premia narrowed today leading by Italy.
  • The USD recovered some ground today against its main peers. Meanwhile most EM currencies depreciated with the main exception of the ARS ahead of today’s release of Argentina’s CPI. Others Latam currencies depreciated despite stable crude prices: the latest report showed that OPEC cut its forecast for global oil demand in 2019, signaling potential further oil supply cuts.

Download the full report

This document was prepared by Banco Bilbao Vizcaya Argentaria’s (BBVA) Research Department on behalf of itself and its affiliated companies (each a BBVA Group Company) for distribution in the United States and the rest of the world and is provided for information purposes only. The information, opinions, estimates and forecasts contained herein refer to that specific date and are subject to changes without notice due to market fluctuations. The information, opinions, estimates and forecasts contained in this document have been gathered or obtained from public sources believed to be correct by the Company concerning their accuracy, completeness, and/or correctness. This document is not an offer to sell or a solicitation to acquire or dispose of an interest in securities.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD trims Pound-related gains, back to 1.1150/60 price zone

The EUR/USD pair got a nice short-lived boost from Brexit optimism, although it quickly trimmed gains, as PM May failed to convince the markets. Failure near 1.1200 left doors opened for a retest of the yearly low at 1.1110.


GBP/USD nears 1.2700 as Brexit optimism fades

The GBP/USD pair keeps easing from daily highs and approaches the 1.2700 figure, down from 1.2814 as UK opposition wasn't convinced by PM May 'new' Brexit deal proposal.


USD/JPY extends gains above 110.50, to highest in two weeks despite US Dollar weakness

The USD/JPY broke above 110.25 earlier today and accelerated to the upside. During the American session printed a fresh daily high at 110.63, the strongest in two weeks. 


Anti-EU populism rise not priced in the EUR, European election could hit Euro

The European Union is holding its Parliamentary election next Sunday, May 26th and the impact of this political event seems to be underpriced by currency markets. 

Read more

Gold struggles pull away from May lows, continues to trade near $1270

The XAU/USD pair closed the first day of the week virtually flat below the $1280 mark and came under a renewed pressure on Tuesday as the upbeat market sentiment didn't allow the precious metal to find demand as a safe-haven

Gold News