Dollar falls ahead of FOMC meeting, sterling tumbles as UK speaker bans vote on same Brexit plan

Market Review - 18/03/2019  23:50GMT  

Dollar falls ahead of FOMC meeting, sterling tumbles as UK speaker bans vote on same Brexit plan

The greenback ended the day broadly lower against majority of its peers, except versus sterling, ahead of the Federal Reserve interest rate decision on Wednesday. Sterling tumbled in New York after UK Parliament speaker Bercow blocked PM May's plan for another meaningful vote.  
  
Versus the Japanese yen, dollar initially gained to 111.63 in Asian morning on rise in the Nikkei 225 before retreating to 111.45 in Europe. Despite rebounding 111.58 in New York morning, renewed selling emerged and knocked the pair down to   
session lows at 111.30 on usd's broad-based weakness.  
  
The single currency found renewed buying at 1.1319 in New Zealand and traded with a firm bias in Asia, then gained to a 13-day high at 1.1359 in Europe on usd's weakness before retreating in tandem with sterling to 1.1325 in New York.  
  
The British pound went through a volatile session. Although cable edged up to 1.3300 in New Zealand, price met renewed selling there and fell to 1.3229 in European morning on news that UK lawmakers will reject UK PM May's deal for the third time in the upcoming British Parliamentary vote. Despite rebounding to 1.3275 ahead of New York open, the pair tumbled to session lows at 1.3183 (Reuters) in New York after UK Parliament speaker Bercow blocked May's plan to put Brexit deal to another vote before rebounding to 1.3259 on short-covering.  
Reuters reported there will be no deal agreed this week between the Democratic Unionist Party and the British government over whether it will support Prime Minister Theresa May's Brexit deal, ITV's political editor said on Monday. Also, the British government must submit a different proposition to parliament to the one it lost last week if it wants to hold another vote on its Brexit plans, the parliament's speaker, John Bercow, said on Monday.   
  
Bercow, the ultimate arbiter of whether the government can ask parliament again to pass Prime Minister Theresa May's deal to leave the European Union, said Ministers could not submit the same proposition again.   
  
In other news, Reuters reported inflation and growth in the euro zone are continuing to slow this year but they are set to rebound further down the road, the European Central Bank's Vice-President said on Monday.   
"Supportive factors continue to be in place that will lift inflation above this year's muted levels in the more medium term," Luis de Guindos said in Madrid, largely repeating ECB President Mario Draghi's comments from earlier this month.  
  
Data to be released on Tuesday :  
  
New Zealand Westpac consumer survey, GDT price index, Australia home price index, Swiss trade balance, exports, imports, Italy trade balance, UK claimant count, ILO unenmployment rate, employment change, average weekly earnings, Germany ZEW economic sentiment, ZEW current conditions, EU construction output, labour costs, ZEW economic sentiment, and U.S. redbook, durables ex-defense, durable goods, durables ex-transport, factory orders.