Market Review - 26/03/2019  23:55GMT  

Dollar higher on recovery in global stocks and U.S. yields

The greenback ended broadly higher against majority of its peers on Tuesday as global stocks staged a recovery together with a rebound in U.S. Treasury yields. Sterling rallied in European morning after two lawmakers hinted they might support UK PM May's withdrawal deal.  
  
Versus the Japanese yen, dollar found renewed buying at 109.94 in Australia and gained to 110.24 in Asian morning. Despite briefly retreating to 110.00, price later rallied to session highs at 110.69 in New York morning on rise in global stocks before retreating to 110.42 in New York afternoon on weakness in U.S. Treasury yields.  
  
The single currency went through a volatile session. Euro initially fell from 1.1324 (Reuters) in Australia to 1.1304 in European morning before edging up to session highs at 1.1327 in European morning. However, price met renewed selling there and dropped to an intra-day low at 1.1263 in late New York on usd's strength before recovering.  
  
The British pound also went through a hectic session. Although cable initially rebounded to 1.3224 in Australia after UK lawmakers voted to take control of the Brexit process for a day, price retreated to 1.3180 in Asia, and then ratcheted lower to session lows at 1.3158 in European morning on concern over possibility of a snap election. However, the pair erased its losses and rallied to an intra-day high of 1.3262 at New York open on news that two UK Conservative eurosceptic lawmakers might support British PM May's Brexit deal before weakening to 1.3198 on profit-taking.  
  
Reuters reported the leader of a faction in British Prime Minister Theresa May's Conservative Party demanding a clean break from the European Union said there was a clear choice now facing lawmakers: back the government's divorce deal or risk no Brexit at all.   
  
Lawmaker Jacob Rees-Mogg's comments indicated he could scale back his opposition to May's deal for leaving the European Union ahead of a another potential vote in parliament on her plan, which has already been rejected twice.   
  
In other news, Reuters then reported Britain's parliament will begin voting on alternative options for the way forward on Brexit at 1900 GMT on Wednesday, under plans put forward by lawmakers who have taken control of the process from the government.   
  
Opposition Labour lawmaker Hilary Benn posted a picture of the so-called Business of the House Motion on Twitter, which sets out that lawmakers will have half-an-hour to record their votes on a range of Brexit proposals selected by the Speaker of parliament.   
  
The results will then be announced by the Speaker at some point before parliament finishes for the day.   
  
The motion also states that lawmakers plan to take control of parliamentary time again on Monday April 1 for another debate on Britain's exit from the European Union.   
  
On the data front, the U.S. Conference Board said Tuesday its consumer confidence index fell to 124.1 in March, below expectations for a reading of 132. That's down from 131.4 in February and just slightly higher than its recent low of 120.2 in January.  
  
Data to be released on Wednesday :  
  
New Zealand RBNZ interest rate decision, France consumer confidence, producer prices, Italy business confidence, consumer confidence, trade balance,Swiss investor sentiment, UK CBI distributive trades, U.S. MBA mortgage application, trade balance, current account, and Canada trade balance, exports, imports, average weekly earnings.  

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