Sterling dipped after three Conservative MPs resigned to join the Independent group.
Federal Reserve minutes were relatively dovish with a suggestion that the balance sheet reduction would come to an end later this year.
The dollar had already weakened into the release and secured some relief on short covering as rallies in the Euro and Sterling attracted selling interest.
Global equities posted fresh 4-month highs with hopes that the US and China would be able to secure a trade deal.
Oil prices advanced to fresh 3-month highs on hopes for market rebalancing while precious metals corrected lower.
After initial gains on strong jobs data, the Australian dollar declined sharply on fresh speculation over interest rate cuts and commodity currencies overall lost traction.
Cryptocurrencies secured further net gains, although bitcoin hit resistance at key levels.
The CBI reported that manufacturing activity had weakened in the three months to February, although there was an improvement in order books to 6 from -1 the previous month as the exports component also strengthened slightly.
Sterling dipped after three Conservative MPs resigned to join the Independent group. This will reduce the government’s notional majority and increase instability, although there was a high degree of uncertainty and potentially mixed implications for the Brexit process. Sterling overall dipped with GBP/USD near 1.3010 on increased speculation over a General election.
Talks between Prime Minister May and EU Commission President Juncker were described as constructive with a further discussion of guarantees to offer reassurance over the backstop. Speculation over progress and higher oil prices boosted Sterling with GBP/USD highs near 1.3100. There was, however, no evidence of a Brexit breakthrough ahead of key parliamentary votes next week and GBP/USD corrected to below 1.3050 amid intense political uncertainty. GBP/EUR was held around 1.1500, although it rallied from intra-day lows.
Economic Calendar
Expected | Previous | ||
---|---|---|---|
07:00 | Germany CPI (Y/Y)(JAN) | 1.40% | 1.40% |
07:00 | Germany CPI (M/M)(JAN) | -0.80% | -0.80% |
07:00 | Germany Harmonised CPI (M/M)(JAN) | -1.00% | -1.00% |
07:00 | Germany Harmonised CPI (Y/Y)(JAN) | 1.70% | 1.70% |
08:00 | ECB Praet Speech | - | - |
08:15 | Markit Mfg PMI(FEB) | 51.2 | 51.2 |
08:15 | Markit Serv PMI(FEB) | 49.2 | 47.8 |
08:30 | EUR German PMI Services(FEB) | 52.8 | 53 |
08:30 | EUR German PMI Composite(FEB) | 52 | 52.1 |
08:30 | EUR German Manufacturing PMI (M/M)(FEB) | 49.8 | 49.7 |
09:00 | Euro-Zone PMI Manufacturing(FEB) | 50.3 | 50.5 |
09:00 | Euro-Zone PMI Composite(FEB) | 50.8 | 51 |
09:00 | Euro-Zone PMI Services(FEB) | 51.4 | 51.2 |
09:00 | GBP Public Sector Net Borrowing(JAN) | -11.05B | 2.11B |
10:00 | CPI (EU Norm) Final YY*(JAN) | 0.90% | 0.90% |
10:00 | CPI (EU Norm) Final MM*(JAN) | -1.70% | -1.70% |
12:30 | ECB Monetary Policy Meeting Accounts | - | - |
12:50 | FOMC Member Raphael Bostic speech | - | - |
13:30 | USD Philadelphia Fed. Manufacturing Index(FEB) | 15 | 17 |
13:30 | CAD Wholesale Sales (M/M)(DEC, 2018) | - | -1.00% |
13:30 | USD Durable Goods Orders (M/M)(DEC, 2018) | 1.70% | 0.70% |
13:30 | USD Durable Goods Orders Ex Transportation(DEC, 2018) | 0.20% | -0.40% |
14:45 | USD Manufacturing PMI(FEB) | 54.7 | 54.9 |
14:45 | USD Markit Services PMI(FEB) | 54.2 | 54.2 |
14:45 | USD Markit PMI Composite(FEB) | - | 54.4 |
15:00 | USD Existing Home Sales(JAN) | 5.03M | 4.99M |
15:00 | USD Existing Home Sales Change(JAN) | 0.90% | -6.40% |
15:30 | USD Crude Oil Inventories | - | 3.633M |
17:35 | BoC Gov Poloz Speaks | - | - |
22:30 | RBA Assistant Gov Lowe Speaks | - | - |
23:30 | JPY National CPI Ex-Fresh Food (Y/Y)(JAN) | 0.80% | 0.70% |
23:30 | JPY National CPI (Y/Y)(JAN) | - | 0.30% |