Sterling Slips, Euro Firms, Gold on Edge - US Market Open
Market Highlights (March 18, 2019)
GBP: PM May Looking to Break the Brexit Stalemate.
EUR: The Euro Nudges Higher but Move May be Fleeting.
Sterling (GBP) starts a busy week in negative territory as PM Theresa May continues to push ahead with her Brexit bill. It looks likely that the bill will be presented again to Parliament to vote on this week, if the PM secures the backing of the Democratic Unionist Party (DUP). If a vote is to take place it will need to be before the latest European Council meeting starts on Thursday (March 21). A delay in the UK exiting the EU looks inevitable whatever the outcome of any vote. The latest Bank of England (BOE) policy meeting takes place on Thursday with all monetary policy settings expected to be left untouched.
DailyFX Senior Currency Strategist Chris Vecchio will cover the BOE Rate Decision Live on Thursday.
Euro (EUR) starts the week on the front foot helped by a weaker US dollar and British Pound. A raft of sentiment indicators and PMIs this week may well underscore the weakness in the Euro-Zone at present and weigh on the single currency. In addition, the latest FOMC rate decision on Wednesday may well weigh further on EURUSD.
DailyFX Chief Strategist John Kicklighter will cover the FOMC Rate Decision Live on Wednesday
Gold (XAU) traders will also be keeping an on this week’s Fed meeting for any clues on the future path of interest rates. 10-year US Treasury yields (2.59%) are at, or very close to, their lowest levels of the year as additional rate hikes are priced-out of the bond market. In addition, Gold may suffer from an ongoing risk-on market sentiment as equity markets continue to push higher.
US 10-Year Treasury Yield – Not Convinced About Rate Hikes
What’s Driving the Markets Today (March 18) - Latest News, Views and Analysis.
--- Written by Nick Cawley, Market Analyst
To contact Nick, email him at nicholas.Cawley@ig.com
Follow Nick on Twitter @nickcawley1
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.