Currency Market Analysis

Mar 14, 2019 | Currency Market Analysis

Global Themes

Pound jumps on “no deal” vote; Chinese data in focus

The British pound jumped higher overnight after the UK parliament defied the Conservative government and voted to rule-out the potential for a so-called “hard Brexit”.

The GBP has recently been trading in line with expectations for a “no deal” Brexit and has gained solidly in 2019 as the chance of a hard Brexit became less likely.

The UK might still face a hard Brexit on 29 March; the UK parliament needs to come up with an alternative to either recognise the existing deal, extend the end date or go back on the 2016 vote.

Higher again

In other markets, the USDSGD fell for fourth day.

The recent lift in US sharemarkets has pressured the US dollar with last week’s weaker US jobs number and poor inflation seemingly eliminating any chance of a Fed hike in 2019.

The AUDUSD climbed 0.2%

Chinese data

 Today, Chinese data is very much in focus after some data earlier this month (including manufacturing PMI, trade) has seen a small turn higher.

The Chinese market will see retail sales, industrial production and fixed asset investment all released around 10.00am.

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