- Home
- Blog
- Currency News
- The Pound Gets More Playtime Inside the Brexit Labyrinth
The Pound Gets More Playtime Inside the Brexit Labyrinth
Sterling is showing little reaction after the EU agreed to a flexible extension of the Brexit clock WTI crude oil is unable to push above
11 april 2019 — 3 min read
**Overview:**
The greenback is trading broadly higher against major currencies on the back strong employment pointers
Sterling is showing little reaction after the EU agreed to a flexible extension of the Brexit clock
WTI crude oil is unable to push above $65 per barrel and is losing momentum dragging commodity-linked currencies lower
**Highlight:**
The Australian dollar is heading southward today following weaker oil prices. WTI Crude oil is down 1.1% this morning aftermarket attention shifted to the global growth slowdown. AUD/USD seems to show little reaction after the PM called for the election on May 18th. The pair is expected to be choppy ahead of event risks, including a trade deal announcement between China and the US and the upcoming general election.
US DOLLAR
The US dollar is trading higher across the board following the release of better than expected initial claims this morning. US unemployment insurance claims saw a decrease of 8,000 to a record level at 196,000, which is its lowest since 1969. The latest report once again underlines a healthy labour market. In a separate report, the Producer Price Index rose 0.6% in March, above market estimates and could reignite talks of Fed hitting on the hike button. The DXY Index is up 0.2% halting a three-day slide. Commodity-linked currencies are under pressure this morning as WTI crude oil hits a red patch, and is down 1.20% on the day.
BRITISH POUND
GBP/USD goes sub-1.31 in choppy trading. The EU agreed to extend Brexit to October 31st last night. Once again, lack of clarity on the next course of action is injecting unwarranted volatility in the market. It is likely we will see more political chaos as the PM tries to bring her Withdrawal Plan (rejected three times) to the House.
EURO
EUR/USD is trading inside a narrow trading range after yesterday’s dovish decision from the ECB. The Governing Council sees more headwinds and believes the accommodative currency policy is to remain in place until at least the end of 2019.
CANADIAN DOLLAR
The Canadian loonie is among the weakest G-10 currency this morning, down 0.5% against the greenback. House prices have stalled nationally despite growth in some regions of the Canadian housing market. USD/CAD is expected to trade with a positive bias following the release of lower US unemployment claims and weaker oil prices.
AUSTRALIAN DOLLAR
The AUD USD dipped to 0.71361 before recovering slightly to close at 0.71372 on the back of lagging oil prices.
FEATURED CURRENCY
USD/JPY jumped to a two-day high on reports that a trade deal between the US and China is right at the next corner. The two largest trading partners are working on the finer details of implementation and monitoring issues. Investors seem to welcome news of a Brexit extension but the risk on sentiment could be short-lived as we expect UK political drama to create more confusion.
**Online Money Transfers**
Moving funds between international accounts?
Sign up for XE Money Transfer and transfer money online 24/7.
You get free online quotes, so you know your costs before you book a transfer.