Daily Market Update

Pick-up in risk-appetite and low data hurts U.S. Dollar

March 12, 2019

The U.S. Dollar finds itself losing some ground based on renewed sense of optimism across markets that perhaps items such as Brexit and other risk elements could fade as market draggers.

Overview

Additionally, economic indicators such as Consumer Price Index and the NFIB Small Business Optimism survey came in lower than expected with inflation for February missing the 0.2% mark at just 0.1% while the business gauge once more disappointed.

Ever since the end of August, this NFIB measure has been on a decline of 6.9%, indicating that owners and decision-makers are not positive at the moment and have not been for about seven months. During 2008, this figure was on a downward slope prior to the Great Recession. At the time of writing, the buck was losing all over the board against its counterparts. It was confirmed by the White House there is no set date for a meeting between President Trump and China’s President Xi Jingping to talk trade in Washington, DC.

 

What to Watch Today…

  • Brexit Debate and Deal Vote 10AM-4PM

Complete Economic Calendar can be found here.

 

EUR

The Euro has started climbing back after last week’s European Central Bank meeting threw a wrench on the prospects of the shared currency’s appreciation based on monetary policy changes. However, data for the Euro-bloc has improved since revealing some idiosyncratic contractions for member nations at the start of the year and for Q4 of 2018.

Industrial Production in Germany was revised upward for December after originally showing it being down. Also, trade deficit going up in Germany was seen as a positive because the 1.5% uptick in imports shows the country can produce demand for products, an indicator that consumption is OK despite some fears.

GBP

The Pound rose by 2.2% as news came out that Prime Minister Theresa May was able to manage a last-minute legal guarantee from the EU that could help push the numbers in her favor as it comes to the necessary votes in Parliament to affirm her already-negotiated Brexit deal.

The debate is starting at the moment and it is expected that the opposition will make it too difficult for May to succeed, thus many traders expect the push for a delay. As news broke out that the Pro-Brexit MPs do not like her revised deal, Pound fell. As we have written the past few days, expect wild wild wild swings because this is unprecedented and full of twists.

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