Kantox currency update: pound ticks down as UK votes to delay Brexit
The pound retreated from mid-term highs on Thursday, after the UK parliament decided to delay the application of the Article 50 to withdraw from the European Union, in an attempt to buy time to avoid a no-deal Brexit.
The dollar edged up after several days of decline, with the euro pulling back from one-week highs, while the yen sold off ahead of the BoJ’s meeting, as the investors anticipated that the Japanese Central Bank would maintain its dovish monetary policy stance.
EUR/USD: eased from one-week highs at 1.1340. The euro retreated moderately from one-week highs at 1.1340 on Thursday against a slightly stronger dollar, although the pair remains steady above 1.1300 so far. As at the London market opening times, the EUR/USD is trading at 1.1325.
GBP/USD pulls back to 1.3200. The pound retreated on Thursday from eight-month highs at 1.3375 after the parliament voting on the Brexit delay, to find support at the 1.3200 area. As at London market opening times, the GBP/USD is trading at 1.3230.
USD/JPY stalls below 112.00. The dollar appreciated further on Thursday, with the yen on the defensive ahead of the release of the BoJ monetary policy meeting, but the pair found resistance right below 112.00, to consolidate above 111.60 during Friday’s early trading. As at London market opening times, the USD/JPY is trading at 111.70.
In the Calendar Today
The only event worth mentioning today will be the final reading of the Eurozone’s Consumer Prices Index, which is expected to confirm the 1.5% year on year increase shown in the preliminary estimation. The impact of this event in the euro is likely to be limited.
10:00 GMT EZ: Consumer Prices Index (YoY) (Feb)
Prev: 1.5% Cons: 1.5%