Brexit can kicked down the road again

April 11, 2019

A stack of data is due for publication throughout the day and overnight, while the agonising Brexit saga is set to be dragged out even further.

The EURUSD strengthened modestly overnight, overcoming a sharp sell-off late in the day. The pair opened at $1.12612 and climbed in early and mid-session trading, peaking at $1.12866. The euro then tumbled over the next two hours, hitting a low of $1.12286. Late trading saw the euro bounce off those lows and regain most of those losses. It is currently trading at $1.12762. The GBPUSD made some solid gains on the back of the delayed Brexit deadline. The pair opened at $1.30393 and dipped to an opening-hour low of $1.30336 before taking off and climbing for most of the session. The pound peaked at $1.31192 before a retrace saw it dip back below $1.31. It is currently trading at $1.30944.

The Dow remained quite steady overnight after opening at 26,143.13. The index climbed in early trading, hitting highs of 26,224.71. The Dow fell from that high, bottoming-out at 26,096.45 a few hours later. It has bounced off those lows and is currently trading at 26,182.50. The Dax has recovered from the sharp sell-off from the day before after opening at 11,879.92. The German index dipped to early lows of 11,874.40 before a rally saw it hit highs of 11,957.27 midway through the session. It came off those highs and closed at 11,924.61.

The day ahead contains a stack of data, while the Brexit saga has painfully taken another turn. The EU has agreed to extend the Brexit deadline until October 31 in what is a frustrating time for UK voters. The constant delays in delivering Brexit has many people wondering whether what they voted for will ever be delivered. The longer this drags on, the more weary people will be about implementing Brexit, while it could end up becoming another election issue.

Data released today and the early hours of tomorrow morning include:

China – CPI & PPI

Europe – German & French Final CPIs

NZ – Business NZ Manufacturing Index, Visitor Arrivals

Canada – NHPI, BoC Governing Council Member Carolyn Wilkins speaks

Australia – MI Inflation Expectations, RBA Assistant Governor Guy Debelle speaks

US – PPI & Core PPI, Unemployment Claims, Natural Gas Storage, FOMC Members Richard Clarida, John Williams, James Bullard and Michelle Bowman speak

 

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