Forex today saw a major selling in the Pound at the start of the new week in Monday’s early trading, as Brexit worries returned to the markets due to the increased odds of the UK PM May’s Brexit deal rejection by the UK lawmakers ahead of Tuesday’s meaningful vote.
Pound broke below the 1.3000 level and reached three-week lows near 1.2970 region. The EUR/USD pair also traded on the back foot, tracking the losses in the sterling, with dwindling Eurozone growth concerns also dragging the common currency lower. Meanwhile, the Yen traded on a weak tone amid softer risk tones, keeping USD/JPY well above the 111.00 handle.
This week’s EUR calendar started with several key German macro releases at 07:00 GMT, including the industrial production, trade balance and current account. Also, of relevance remains the UK consumer inflation expectations data.
From the NA docket, the US retail sales data will be published at 12:30 GMT among a few minority reports. Later in the session, the BOE MPC member Haskel’s speech will be closely followed at 13:00 GMT for fresh GBP trades. The US traders may receive some fresh trading impetus from the US President Trump’s budget release at 15:30 GMT.
Oil prices gained on Monday in Asia following reports that Saudi Arabia oil minister Khalid al-Falih said there will be no OPEC+ output policy change until June. The Organization of the Petroleum Exporting Countries, which together with some non-affiliated producers like Russia, agreed late last year to reduce output by 1.2 million bpd to prop up prices. Looking ahead, market players will likely focus on monthly reports from the OPEC and the International Energy Agency this week to assess global oil supply and demand levels.
Gold’s corrective bounce from the lows near $1,280 seen from the end of last week, seems to have run its course as the yellow metal failed to surpass the 1,300 level. It is possible prices to revisit the $1,285/90 zone as the U.S. dollar is mostly stronger and that is adding some downward pressure on Gold.