UK Pound Gathering Strength Under Brexit Hopes

Positive Durable Goods Order data merely supported the plunging USD Index; Yen to remain silent amid risk-sentiments; AUD drifts near two-month low
Nikhil Khandelwal
brexit referendum uk

Pound Stands Strong Albeit A Possibility of No-Deal Brexit

Sterling rose by 0.7% against the USD Index albeit UK Prime Minister Theresa May was defeated in the House by 149 votes losing Majority. This was the second consecutive time, Theresa May faced rejection from the Parliament for a deal Brexit. There had been a strong hope developed among the investors which helped the Pound and Euro reach new heights.  

Shahab Jalinoos, global head of foreign exchange strategy at Credit Suisse commented that “The outcome yesterday of the vote was more or less what the market expected despite the actual drama of the politics. Now we have to wait and see what comes next. There are so many permutations and combinations available at this point that it has left the market on hold”.

Sterling Pound was hovering at its higher values offsetting by 3.5 cents against the USD. GBP/USD chased more upward movement with the EU rejecting May’s deal vis-a-vis Brexit.  

Even Positive Durable Goods Order Numbers Couldn’t Help Tumbling USD  

USD Index in comparison with the six major currencies was measured lower by 0.21% reaching $96.70. Last month, around 20,000 jobs were added in the US. Producer Prices for February were merely above the previous numbers. A day before, the Consumer Price Index had also improved on marginal levels. This inflation data bolstered the lower chances of a nearby hike in the US interest rates. Though the Orders for Durable goods recorded the highest growth in the six months in January, this was inadequate to alter the losing outlook for the US economy in 1H2019. USD/CAD continued to downfall even with the 0.34% upliftment in the US Durable Goods Orders. EUR/USD remained steady at 1.1298 recovering its previous losses.    

GBP/JPY Remained Buoyed With Uplifted Brexit Hopes

GBPJPY 5 Min 13 March 2019

Japanese Yen again manages to stay consistent at 111.36 JPY/USD. Japanese Core Machinery Orders slipped by 5.4% which was recorded as the steepest fall in the last four months. GBP/JPY pair stayed afloat amid strong Pound weighed by Brexit hopes and weaker Japanese Machinery data. This pair is on the road of recovering the last week losses.     

Euro Climbs Heights With Positive Economic Data

Eurozone industrial production was higher than the overall market expectation for the first month of 2019. Following the release of such good numbers, Euro surged by 0.1% reaching a peak of $1.1302. Eurozone budget was announced which aimed at providing loans to nations within the zone. This was implemented with an aim to give an impetus to the country’s liquidity outright.

EURUSD 1 Min 13 March 2019

AUD Hovers Near Two-Month Low

Australian dollar slumped as consumer confidence was recorded as the lowest in this month. Over the last week, the economy has been in a downtrend after the Reserve Bank of Australia could not accomplish as per the guidance provided by the bank for an interest rate hike. This event triggered a profound weakness in the country’s economy. AUD was down by 0.5% reaching $0.70495 which was merely $0.0049 above the two month low.

NZD/USD Pair Bounces Off In the Second Half

NZDUSD 5 Min 13 March 2019

NZD/USD pair saw a three-day consecutive winning streak. The pair experienced bearish pressure since the morning. The NZD/USD pair touched the intraday low of 0.6830 before bouncing back strongly. The pair reached the intraday high of 0.6858. The tumbling USD Index helped the pair recovery in the second half of the day.

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