Following heavy volatility on the back of Brexit news, Forex today takes a breather ahead of the European session on Friday.
Traders shrug off China/Japan data amid a lack of major trade/Brexit news. However, doubts over the UK PM’s ability to get the recent Brexit deal through the Parliament and activation of the US tariffs on the EU goods compress risk sentiment.
GBP/USD becomes the biggest loser, though only with 0.30% of loss, as investors doubt the UK’s PM ability to get the Parliamentary approval for his recent Brexit deal during Saturday’s special session. EUR/USD fails to gain much from the European Central Bank (ECB) policymaker Klaas Knot’s upbeat comments whereas USD/JPY also defies soft Consumer Price Index (CPI) data from Japan.
Looking ahead, it will be a light one in terms of economic releases, but all eyes will now be on Westminster ahead of tomorrow’s crunch Brexit vote in parliament.
While major market attention is given to Saturday’s special UK Parliamentary session, Fedspeak before the blackout period will offer intermediate trading moves. Comments from Robert Kaplan, Esther George, and the Vice-Chair Richard Clarida will be weighed with recently downbeat US data
Additionally, any Brexit/trade related comments from the on-going International Monetary Fund (IMF) meeting and the European Union (EU) summit will not be underestimated amid a light economic calendar.
Gold offers little moves while Crude declines on the high stockpile, receding geopolitical tension. The US 10-year Treasury yield stands weak around 1.74% with Asian markets showing a lack of momentum.