Market Drivers April 15, 2019
FX steady from Friday
Hammond claims Tory/Labor talks constructive
Nikkei 1.37% Dax -0.04%
Europe and Asia:
USD Empire 8:30
It’s been a steady night of trade in FX with majors essentially continuing the anti-dollar rally from Friday.
With little economic data on the calendar or fresh news from headlines, the currency markets were content to hold ground for most of Asian and early European trade with euro probing the highs of Friday but stalling at the 1.1320 level.
Cable was better bid clearing the 1.3100 figure on a statement from Philip Hammond that Tory/Labor talks were more constructive than previously thought through any multi-party agreement on a fresh Brexit proposal appears to be far off just yet. Still, the relief from the Brexit extension could prove positive for the UK economy over the next few months especially if it improves consumer sentiment and spending.
With no major eco data in North American trade, the subdued dealing tone could extend into the rest of the day. With geopolitical issues on pause for now and markets heading towards Spring holidays in Japan and Easter break in the West the next few weeks could see the extremely low volatility trends continue as markets look for fresh themes to trade. For now, the short covering anti-dollar rally continues to be the main story of the day.