Today's Highlights

  • Bank of Japan keeps rates on hold but worries about global economy

  • Positive data expected from the USA today

 

Current Market Overview

Lordy be…Friday got here quickly didn’t it? Beware the ides of March, as someone once said. The UK Prime Minister will be watching her back and that’s a fact. Et tu colleagues!

Once again, the day will be dominated by Brexit shenanigans after Sterling rose for most of Thursday and then slipped off its pedestal when MPs voted by a huge margin to delay the date that the UK will leave the EU. If they haven’t managed to agree on a deal in two years and nine months, it is hard to see what will change between now and the revised date of 30th June and, of course, the EU has to agree to the change as well. It is not at all certain that will happen.

Sterling still starts Friday around $1.3250 and €1.17 at the mid-market level but goodness only knows what the clowns our dutiful MPs at Westminster will cook up for us today.  As far as the UK goes, there is nothing to write home about on the data front, so Sterling is at the mercy of the politicos.

Japan leave interest rates on hold

Overnight, we heard that the Bank of Japan dutifully left their base rate on hold as they bemoaned the state of the global economy and expressed their fears of a further slowdown.

Bad news for Australian and New Zealand Dollars

Talk of a delay before the US and Chinese Presidents can meet regarding trade talks weakened the currencies of the countries that support China and rely on commodity exports. So the Australasian and Canadian Dollars plus the South African Rand and others around Asia suffered a little. 

Interesting times for the US Dollar

The US Dollar is also at the weak end of its spectrum but we are expecting improvements in today’s US data. That includes the Empire State Manufacturing Index, Industrial Production and the University of Michigan Consumer Sentiment Index. So don’t be surprised if the US Dollar is a little more expensive later in the day. Clearly that would mean the Pound is a little cheaper for USD sellers too. So there’s the silver lining.

Happy Birthday, internet!

And who would have thought that the very first internet domain name www.symolics.com was registered on this day in 1985? Happy 34th birthday, internet old boy!  You are looking a bit long in the tooth, but, in true stereotypical style, you break down very easily.

 

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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.

EUR/USD News

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.

GBP/USD News

USD/JPY stalls bounce near 110.60 post-mixed Japanese data

The tepid bounce in the USD/JPY pair appears to stall near 110.60 region following the releases of mixed Japanese trade and machinery orders data. However, the risk remains to the upside amid fresh US-China trade optimism and ahead of the key FOMC minutes. 

USD/JPY News

FOMC Minutes Preview: Inflation, inflation, where's the Fed's inflation?

The better than anticipated US first quarter GDP of 3.2% received its due in the May FOMC statement where “economic activity rose at a solid rate” in contrast to the March note where “activity has slowed from its solid rate in the fourth quarter.”

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

Majors

Cryptocurrencies

Signatures