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Nikhil Khandelwal

Dollar Slip Bolsters Over An Unsure Brexit Deal

USD Index continued to fall since the start of the day amidst unstable concerns pertaining to Brexit case, Global Trade issues and a high US Consumer Price Index (CPI) number.

US Consumer Price Index for February Month

The DUP Party of Northern Ireland displayed a dis-support for a deal Brexit earlier the day after Cox’s legal advice. They explicitly mentioned that a deal Brexit would be jeopardized. Theresa comments later that there won’t be a Brexit if the deal is getting rejected. These had added deep uncertainty to the US Index.

Almost after the last four months, US CPI surged in the month of February. US CPI was up by 0.2% for February. This increase is the lowest annual gain in the last 2.5 years. USD slumped then by 0.17% reaching 97.054. The Core CPI reported a lower 2.1% annual rate which further led to the decrease in USD index.

The Index uplifted slightly by the end of the day with a confident hope developed over a Brexit deal when the news broke regarding May coming into legally binding assurances from EU. The Market awaits the Second Meaningful Vote which is scheduled to be at around 1900 GMT.


Burgeoning Sterling Ahead of Parliamentary Vote

After pretty much fluctuations throughout the day, Sterling seems back to the same point where it was the last day albeit touching a new 22-month best against the Euro counterpart. Sterling gained over the period following optimism of a deal Brexit. The Currency also got marked as the Best Performer of 2019 considering the retrospective uplift.

GBP/USD lowered later the day on various Brexit headlines. The pair fell around by 200-pips. The pair went down further after Cox commented that “The Interpretive document offered by the EU would grant no legally guaranteed right to exit the Irish Backstop in the event of a deal deadlock.” This bearish stance seemed to recover soon with positive outcomes of the Prime Minister’s Cabinet Meeting, and the pair then gained around 90-pips.

Yen Continues To Be Silent

USDJPY 1 Min 12 March 2019

Japanese Manufacturing fourth quarter data reported a decline of 7.3 points in the country’s BSI Manufacturing Index. The USD/JPY pair is trading at around 111.14, merely down by 0.06%. The pair seems undisturbed albeit US CPI release. Japan reported Core Machinery Orders and PPI by the end of the day.

US Inflation Data Boosting AUD/USD

AUDUSD 5 Min 12 March 2019

The AUD/USD pair experienced a decent rally on Monday’s trading session. The pair managed to continue its rally with gains in Tuesday’s trading session. The AUD/USD pair saw selling pressure in the beginning. The pair touched low of 0.7054 before bouncing back strongly. It has reached the intraday high of 0.7090.

Australian Housing data reported today was not-so-good. The Australian Bureau of Statistics released the housing data that revealed the home loans were lower than the overall market expectation. The January home loans data was down by 2.6% before December data.

US Dollar Index was hovering at a peak level of 97.28 before the Inflation data release. US Inflation data helped the AUD/USD pair to shoot up in the later session of the day.

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