In forex today, early market action has seen itself largely toe-dragging in thin Monday flows with broader investor sentiment completely hung up on a steady flow of Brexit headlines from the UK, and UK Prime Minister Theresa May is in a race against the clock to try and achieve a workable Brexit deal (or at the very least, a suitable can-kick) before her own Tory party can finish scraping together the internal support needed to cast May down in a no-confidence vote.
Monday is shaping up to be a Brexit-focus day after the slow bleed of negative Brexit headlines continued through the weekend and into early Monday trading hours, with unverifiable sources reporting that the UK's Tory party now holds up to 42 (of the 48 needed) signed letters within their own parliament in order to swing a no-confidence vote in Prime Minister Theresa May, who is fighting tooth-and-nail to deliver a concession-heavy Brexit deal to the parliament floor for a vote that will almost surely see the measure fail on May's own homefront, with Brexiteers calling for a broad-base no vote on whatever plans May brings forth, with Eurosceptics likely emboldened by Scottish PM Sturgeon's late-day call that the House of Commons should not endorse May's Brexit deal.
The broader market is fairly slack with a thinned-out economic calendar slated for Monday's action, and the upcoming sessions are likely to see continued emphasis placed not only on Brexit headlines, but the ongoing EU-Italy government budget squabble, and the US-China trade war zone, with the US' Vice President reaffirming the Trump government's intention to "more than double" tariffs on China, bringing their base tariff rate up to 25% across the board, despite a recent thawing in talks.
Key notes from the early session:
Over the weekend: Trade tensions back on the rise, Brexit set for another lap
Scotland's Sturgoen: parliament should not endorse May's Brexit deal - Reuters
UK PM May: intense week of Brexit talks ahead - Reuters
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY flat-lines below 151.50 after soft Japanese CPI data
USD/JPY stays defensive below 151.50 after the release of a soft Japan's CPI report and mixed Industrial Production and Retail Sales data on Friday. Japanese verbal intervention also weighs on the pair amid the holiday-thinned conditions on Good Friday. US PCE inflation awaited.
AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull
AUD/USD is trading listlessly above 0.6500 in the Asian session amid light trading on Good Friday. The Aussie pair shrugs off encouraging comments from China's FX regulator, as price action remains subdued ahead of the US PCE inflation data.
Gold flirts with record highs above $2,230, all eyes on US PCE data
Gold price flirts with record highs around $2,230 during the Asian session on Friday. The uptick of yellow metal is bolstered by the safe-haven flows amidst growing economic concerns and the prospect of interest rate cuts from the US Federal Reserve.
Optimism price could fall as nearly $90 million worth of OP tokens is due flood markets
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Will they won’t they cut rates is the question of Q2?
There has been some significant push back from Fed and Bank of England members around the timing of rate cuts, and the Bank of Japan still haven’t physically intervened in the FX market to stem yen weakness although they are threatening to do so.