The British pound rose slightly against other major currencies ahead of the European trading session. The cable traded in a range of almost 280 pips amid growing uncertainty over Brexit. Theresa May failed for the second time to earn the House of Common's approval on her Brexit plan despite securing assurances from the EU. Lawmakers will vote again tonight on leaving the European Union without a deal. It is widely expected that the no-deal exit will be rejected and another vote will be held tomorrow to delay the departure date. The British pound will remain vulnerable to Brexit headlines. The GBPUSD is trading near 1.31, and the EURGBP is trading slightly above 0.86.
The dollar index which measures the greenback against a basket of major currencies finished lower for the third consecutive day on soft inflation data. DXY tumbled to a one-week low of 96.86. The data showed that the Core Consumer Price Index rose less than expected in February. The US Treasury yields drifted lower where the 10-year yields declined to a nine-week low of 2.597%. Market participants await the release of January's Durable Goods Orders along with February's Producer Price Index later today. The USDCHF dropped to a low of 1.0063, and the EURUSD climbed to a high of $1.1305.
Metals prices surged as the dollar weakened along with Treasury yields following weak economic data. The gold ounce jumped to a two-week high of $1305, the silver ounce advanced to a high of $15.46, and palladium continued to hover near $1550.
Oil prices settled higher for the second consecutive day supported by OPEC+ supply cuts and Venezuela's turmoil. Moreover, the American Petroleum Institute reported that the weekly US oil stock dropped by 2.580 million barrels last week. The West Texas Intermediate Crude futures rose to a two-week high of $57.53, and Brent futures tested a three-week high of $67.38. Market participants await the release of the official US crude inventories by the Energy Information Administration later today.
Major Economic Events
|10:00||EU||Industrial Production (MoM) (Jan)||1.0%||-0.9%|
|12:30||UK||Annual Budget Release|
|12:30||US||Core Durable Goods Orders (MoM) (Jan)||0.1%||0.1%|
|12:30||US||PPI (MoM) (Feb)||0.2%||-0.1%|
|14:30||US||Crude Oil Inventories||2.655||7.069|
|Tentative||UK||UK Parliament vote on No Brexit Deal|
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.