Market movers today

  • The day of the long-awaited Brexit vote in the House of Commons has finally arrived (voting starts at 20:00 CET). A defeat of PM Theresa May's Brexit deal is widely expected, so markets will probably not react to the defeat itself but to the size of the defeat. A narrow defeat means that May might be able to get it through at a later stage, but a big defeat means we are in uncharted territory (and we cannot rule out that Theresa May will resign). For more details, see Brexit Monitor - May is losing control over the Brexit process but no credible alternative has emerged yet , 11 January.

  • In the US Empire PMI manufacturing for January is due. Regional PMIs are usually no major market movers, but this time they will receive some attention for indications where ISM manufacturing is heading after the large fall in December.

  • Fed's Kashkari, George and Kaplan are also scheduled to speak later today kicking off a busy week of Fed speakers, while ECB President Draghi is due to speak at the European Parliament in the afternoon.

  • In Sweden the November consumption indicator is on the agenda. Furthermore, the market will continue to monitor the progress towards forming a new government in Sweden which could be settled later this week.

 

Selected market news

Asian equity markets rose along with the oil price overnight, but overall risk sentiment remains fragile amid a slowdown in the global manufacturing sector, which was further confirmed in euro area industrial production figures published yesterday. Furthermore, unfinished political business is keeping markets anxious.

Regarding the unfinished political business, rumours and speculation before the vote on UK Prime Minister May's Brexit deal suggests that she is facing an uphill battle. Market and politicians are already turning attention to the road after an expected loss today, e.g. there is speculation about a potential extension of article 50 to give the UK more time to pass through the Brexit deal.

In Sweden, Stefan Löfven will use a couple of more days to try to convince the Left party to vote for his government. The previous vote in parliament on the government deal scheduled for Wednesday has been postponed until Friday to allow for further debate in parliament.

OPEC's recently agreed production cut deal will already undergo review on 17-18 March at a meeting in Azerbaijan before OPEC ministers will make potential decisions on policy in Vienna on 17-18 April. OPEC is facing headwinds as the deal from last December has been unable to lift oil prices.

Download The Full Daily FX Market Commentary

This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector.
This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange.
Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD falls back toward 1.1150 as US Dollar rebounds

EUR/USD falls back toward 1.1150 as US Dollar rebounds

EUR/USD is falling back toward 1.1150 in European trading on Friday, reversing early gains. Risk sentiment sours and lifts the haven demand for the US Dollar, fuelling a pullback in the pair. The focus now remains on the Fedspeak for fresh directives. 

EUR/USD News
GBP/USD struggles near 1.3300 amid renewed US Dollar demand

GBP/USD struggles near 1.3300 amid renewed US Dollar demand

GBP/USD is paring back gains to trade near 1.3300 in the European session. The data from the UK showed that Retail Sales rose at a stronger pace than expected in August, briefly supporting Pound Sterling but the US Dollar comeback checks the pair's upside. Fedspeak eyed. 

GBP/USD News
Gold hits new highs on expectations of global cuts to interest rates

Gold hits new highs on expectations of global cuts to interest rates

Gold (XAU/USD) breaks to a new record high near $2,610 on Friday on heightened expectations that global central banks will follow the Federal Reserve (Fed) in easing policy and slashing interest rates. 

Gold News
Pepe price forecast: Eyes for 30% rally

Pepe price forecast: Eyes for 30% rally

Pepe’s price broke and closed above the descending trendline on Thursday, eyeing for a rally. On-chain data hints at a bullish move as PEPE’s dormant wallets are active, and the long-to-short ratio is above one.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures