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Forex News on the European morning session – 29 January 2019
Securities:
markets:
- NZD in the lead, CHF late on the day
- Higher European equities; E-minis flat the day
- 10-year US yields down 0.5bp to 2.738%
- Gold up 0.4% to $ 1,308.90
- WTI up 0.9% to $ 52.48
- Bitcoin down 0.9% to $ 3,385
This session started quietly but was slowly dominated by Brexit headlines. The UK Parliament has decided to vote on a series of amendments that will determine the next stage of the Brexit process later in the evening. The pound sterling fluctuated during the European morning as the British pound posted implied volatility reaching its highest level in two weeks as traders continued to face the uncertainty that awaited them later.
Cable rose to 1.3130 to start the session before climbing to 1.3177 as the dollar also weakened a little earlier. The pair then fell to 1.3140 before rising to nearly 1.3170 before the debate on the Brexit should begin at 13:30 GMT (postponed to 12:45).
In the current state of things, everything boils down to two amendments that are seen as a decisive advantage for the outcome of the vote: the Brady amendment and the Cooper amendment.
May supports the first in the hope that she will have something to say in responding to the European Union, while Labor will support the latter in the hope of stifling the position May's negotiation and that a significant majority of members of parliament hope to force the government to evade the decision. an uncompromising option on Brexit.
The other major currencies traded more subdued, with the EUR / USD falling between 1.1420 and 40% for the most part, while the dollar remains gloomy ahead of the Fed meeting tomorrow. At the same time, the USD / JPY pair, which was 109.20, rose to near-highs currently close to 109.50 as the risk moved from sharp tones of Asian trade to a slightly more optimistic tone. , the profits of Apple being at the rendezvous after the closing of the markets.
The kiwi maintained its gains with the NZD / USD trading between 0.6840 and 60% after benefitting from a stronger fixing of the yuan by the PBOC earlier. This also allowed the Australian to resume activity between 0.7155-75 after falling to a low point at 0.7138 in Asia, following poor economic conditions.
Despite all that is going on, gold is threatening to make a bullish breakthrough, as it sits above the June 2018 peak and is trading at its highest level in eight months before US deals. In the future, risk sentiment is expected to trigger new moves in other major currencies, but traders will also be heavily involved in the Brexit tragedy that is set to take place later today.
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