• Sterling is the big mover after the UK parliament soundly rejected May’s Brexit plan yesterday
• The UK parliament will vote whether nor not to go for a hard Brexit, which is likely to fail
• US data have not been helpful for the dollar
• Japan reported weak core machine orders for January
• The HKMA defended the HKD peg for a second day; Mexico January IP is expected to contract -2.0% y/y

Continue reading “Sterling Rallies on Likely Brexit Delay”

• The dollar remains under pressure from weak data and budget uncertainty
• Next up are the inflation readings
• May made a last-ditch attempt at a deal; UK parliament votes on her latest Brexit plan
• Sweden reported lower than expected February CPI
• The Philippine central bank’s new Governor Diokno affirmed his dovish leanings
• India reports February CPI and January IP; Brazil reports February IPCA inflation

Continue reading “Dollar Soft Ahead of UK Brexit Vote”

• Draghi delivered more than we expected at this meeting, markets were clearly disappointed overall
• The US February jobs data could be an important catalyst for an even higher US dollar
• Canada reports February jobs data too; Germany reported weak January factory orders
• China February trade data came in much worse than expected
• The EU reportedly made a new Brexit offer to the UK
• EM FX has sold off sharply after the ECB decision and this trend should continue
• Taiwan February trade data confirmed the mainland reading

Continue reading “Dollar Consolidates Yesterday’s Gains Ahead of US Jobs Data”

• Global markets are relatively calm and marking time
• ECB decision will be the highlight today
• The Fed delivered a somewhat cautious Beige Book yesterday
• During the North American session, Fed Governor Brainard speaks 
• The Loonie remains vulnerable after the BOC delivered the dovish hold yesterday; Australia data was mixed
• Mexico February CPI is expected to rise 3.94% y/y; Peru central bank is expected to keep rates steady at 2.75%

Continue reading “Dollar Mixed as Markets Mark Time Ahead of ECB”

• ADP releases its estimate of private sector jobs and +190k is expected
• The Fed releases its Beige Book report for the upcoming March 20 FOMC meeting
• Bank of Canada is widely expected to keep rates steady at 1.75%
• Brexit talks have reportedly broken down (again)
• The OECD cut its global growth forecast (again)
• Turkey central bank kept rates steady at 24.0%, as expected; National Bank of Poland is expected to keep rates steady at 1.5%

Continue reading “Dollar Rally Continues Ahead of ADP Report”

• The dollar rally remains on track even as markets calm after yesterday’s volatile session
• Final February services and composite PMI readings for the eurozone were reported
• UK reported the last of the February PMI readings
• China lowered its growth target for this year at the annual National People’s Conference
• Japan reported February services and composite PMIs
• Reserve Bank of Australia kept rates steady, as expected; same for Bank Negara
• Philippines CPI rose 3.8% y/y vs. 4.0% expected as a new central bank governor was chosen

Continue reading “Dollar Rally Continues as Markets Await Fresh Drivers”