Sterling was protected by a further Brexit extension, although protracted uncertainty curbed support.

US CPI inflation data was mixed while there was little change in interest rate expectations following the relatively dovish Fed minutes.

The dollar overall lost ground as a retreat on slightly greater optimism over other major currencies was amplified by stop-loss selling, especially against the Australian dollar.

The Euro retreated after a dovish stance from ECB President Draghi, but regained ground on dollar losses with EUR/USD around 1.1280.

Sterling was protected by a further Brexit extension, although protracted uncertainty curbed support.

Oil prices regained ground after a spike lower triggered by a large EIA inventory build as supply concerns remained supportive.

Equities retreated slightly on Thursday ahead of the latest Chinese trade data.

UK industrial production recorded a 0.6% increase for February compared with consensus forecasts of 0.1% with a marginal annual increase. Construction data also beat consensus estimates, although there was a wider than expected trade deficit. Sterling was boosted slightly, although global moves tended to dominate, especially with caution over the EU Summit.

Wider dollar losses allowed a GBP/USD to move above 1.3100 against the dollar with GBP/EUR settling just above 1.1600.

The RICS housing index recovered slightly to -24 for March from -30, but politics dominated. The EU sanctioned a 6-month Article 50 extension until October 30, although the UK can leave earlier than that if the Withdrawal Agreement is approved. Reaction was muted given strong expectations that ‘no-deal’ would be avoided but implied volatilities declined.

There were further concerns that prolonged uncertainty would continue to damage investment and the domestic political situation is liable to become even more chaotic. GBP/USD settled below 1.3100 while GBP/EUR held just above 1.1600.

Economic Calendar

Expected Previous
07:00 Germany Harmonised CPI (M/M)(MAR) - 0.50%
07:00 Germany Harmonised CPI (Y/Y)(MAR) - 1.40%
07:00 Germany CPI (M/M)(MAR) - 0.40%
07:00 Germany CPI (Y/Y)(MAR) - 1.30%
13:30 USD PPI Ex Food & Energy (Y/Y)(MAR) 2.60% 2.50%
13:30 USD PPI Ex Food & Energy (M/M)(MAR) 0.20% 0.10%
13:30 USD PPI (M/M)(MAR) 0.20% 0.10%
13:30 USD PPI (Y/Y)(MAR) 1.90% 1.90%
13:30 CAD New Housing Price Index (M/M)(FEB) - -0.1
13:30 USD Initial Jobless Claims 211K 202K
13:30 USD Continuing Jobless Claims 1.738K 1.717K
14:30 FOMC Member Richard Harris Clarida Speech - -
19:00 ECB Benoit Coeure Speaks - -
23:30 NZD Business NZ PMI(MAR) - 53.7
23:45 NZD Electronic Card Retail Sales (M/M)(MAR 01) - 0.90%
23:45 NZD Electronic Card Retail Sales (Y/Y)(MAR 01) - 3.40%

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.