Currencies remain quiet over the weekend as markets take time out to reflect.
A second Brexit deadline has passed and a second extension has now been granted. What will we focus on next?
The weekend was noticeably absent of any Brexit related headlines with news outlets more focused on the “greatest comeback in sport,” as Tiger Woods claimed his first Master’s tournament victory in 10 years. If only the same could be said for Theresa May.
Focus over the coming months will likely be around the next Conservative leader. Those still loyal to May have emphasised her intention to stay on as PM until a deal is done whilst Brexit leaning MP’s are keen for her to make way as a matter of urgency, especially in light of her recent discussions with Jeremy Corbyn concerning the idea of a customs union with the EU.
The pound has remained largely muted and appears stuck in last week’s ranges against both the dollar and euro. With no high-level data releases throughout today, it is hard to imagine this changing.
Over in the US, Donald Trump seemed intent on putting more pressure on the Federal Reserve as he once again took to Twitter to air his views. Trump tweeted that the stock market would be 18%-35% higher and GDP at 4% rather than 3% had “the Fed done its job properly.” A far cry from his 2012 tweet claiming that “the FED should not do QE3. Neither the economy nor the dollar can withstand another round of artificial liquidity.” ECB President Mario Draghi signalled his concerns over the future independence of the Fed given Trump’s latest rant.
Elsewhere ongoing US/China trade talks will continue to get attention with Wednesday’s Chinese latest GDP figures coming under particular scrutiny.
With the Easter holidays fast approaching in Europe expect a large range bound few days with GBP sticking around 1.16 and 1.31 against the euro and US dollar and EUR/USD struggling to move away from 1.13.
|8:30||USD FOMC Member Evans Speaks||-||-|
|10:30||CAD BOC Business Outlook Survey||-||-|
|13:00||USD FOMC Member Evans Speaks||-||-|
|20:00||USD FOMC Member Rosengren Speaks||-||-|
|21:30||AUD Monetary Policy Meeting Minutes||-||-|