Entering into US session, Sterling remains the overwhelmingly strongest one. It started as a rumor earlier today. But it’s now widely reported that UK Prime Minister Theresa May is proposing to formally rule out a no-deal Brexit. There are many versions and one option is to have a vote on no-deal or Brexit delay for March 12 in the parliament, if the withdrawal agreement is voted down. May is due to speak soon and we’ll quickly finally within an hour.
Technically, GBP/USD broken 1.3173/3217 key resistance zone. A head and should bottom would be formed if GBP/USD can sustain above this zone. EUR/GBP also broke key support level at 0.8617/20, resuming medium term decline.
For now, Yen follows as the second strongest as global stock markets lose ground. Commodity currencies are all under pressure. Canadian Dollar is getting little help from oil prices, which is recovering from yesterday’s low. Dollar is mixed awaiting Fed chair Jerome Powell’s testimony.
In Europe, currently:
- FTSE is down -1.02%.
- DAX is down -0.29%.
- CAC is down -0.27%.
- German 10-year yield is up 0.0055 at 0.119.
Earlier in Asia:
- Nikkei dropped -0.37%.
- Hong Kong HSI dropped -0.65%.
- China Shanghai SSE dropped -0.67%.
- Singapore Strait Times dropped -0.33%.
- Japan 10-year JGB yield rose 0.0089 to -0.027.
