Investors Are Focused on the British Pound

March 19, 2019

by JustForex

Yesterday, the US dollar weakened slightly against a basket of major currencies. Investors took a wait-and-see attitude before the Fed’s monetary policy decision. Financial market participants expect the Fed to keep interest rates unchanged following a two-day meeting, which will start today. The dollar index (#DX) closed the trading session in the negative zone (-0.08%).

At the moment, the British pound is in the spotlight. The pound fell in price after it became known that British Prime Minister Theresa May wanted to carry out the third voting for her Brexit deal in Parliament. However, the pound was under pressure after the Parliament canceled the vote. According to the representative of the House of Commons, John Bercow, fundamental changes had to take place with the offered agreement in order to vote. Theresa May should officially ask EU for the Article 50 extension, since the Brexit date expires on March 29. All 27 EU countries should approve the extension of the Article at the summit on Thursday. But the problem is that Theresa May still hasn’t made the request. If May does not make a request for an extension until Thursday, the pound will have serious problems, because it will force the EU to hold an emergency summit on March 28.

The “black gold” prices are showing positive dynamics amid a decrease in OPEC+ production. At the moment, futures for the WTI crude oil have approached $59.60 per barrel.

Market Indicators

Yesterday, the bullish sentiment prevailed in the US stock market: #SPY (+0.36%), #DIA (+0.25%), #QQQ (+0.06%).

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The 10-year US government bonds yield is at the level of 2.59-2.60%.

The news feed on 19.03.2019:

– Reports on the UK labor market at 11:30 (GMT+2:00);
– German ZEW economic sentiment index at 12:00 (GMT+2:00).

by JustForex