TALKING POINTS – POUND, BREXIT, US DOLLAR, FOMC, TRADE WAR, CHINA
British Pound weak because the UK Parliament debates Brexit deal
US Greenback might rise as FOMC minutes make the case for charge hikes
Yen down, Aussie and NZ up on US-China commerce deal hopes
Brexit returns to the highlight Wednesday because the Parliament resumes debate on the phrases of the UK withdrawal from the European Union. Lawmakers handed Prime Minister Theresa Could one other legislative defeat yesterday, with members of her personal Conservative celebration voting with the opposition to restrict her tax-varying powers within the occasion of the dreaded “no-deal” divorce.
That doesn’t bode effectively for Ms Could’s means to promote the Brexit deal that she agreed with Brussels forward of a vote on its adoption subsequent week. Within the meantime, the EU has roundly rejected renegotiation. Towards this backdrop, BOE Governor Mark Carney will maintain a web-based Q&A session, the place he might effectively sign a dovish disposition because the political stalemate continues. All this may lead the British Pound decrease.
US DOLLAR MAY RISE AS FOMC MINUTES MAKE CASE FOR RATE HIKES
Later within the day, the focus will flip to minutes from December’s FOMC assembly. It culminated in a forecast calling for 2 charge hikes in 2019. The priced-in outlook implied in Fed Funds futures suggests the markets anticipate none. If the Minutes doc makes a compelling case for policymakers’ facet of the argument, the US Greenback is prone to rise.
US-CHINA TRADE DEAL HOPES HURT YEN, BOOST COMMODITY CURRENCIES
The anti-risk Japanese Yen underperformed whereas the sentiment-geared Australian, Canadian and New Zealand traded alongside shares in Asia Pacific commerce. Hopes for a breakthrough in US-China commerce talks appear to be stoking buyers’ optimism after a delegation of officers from Washington DC prolonged its keep in Beijing for an additional day.
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ASIA PACIFIC TRADING SESSION
EUROPEAN TRADING SESSION
** All occasions listed in GMT. See the full financial calendar right here.
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— Written by Ilya Spivak, Forex Strategist for DailyFX.com
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