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No-Deal Brexit Possibility Suddenly Comes Alive for the Markets

Pound investors are ripping up their Brexit playbooks as the chance of a no-deal exit flares once again. Sterling is the only major currency to fall against the dollar this week as U.K. Prime Minister Theresa May gambles on getting her plan over the line with just over a week to go before the exit. Option traders are betting on further losses and increased currency swings, while fund managers are seeking help from constitutional experts to assess the potential fallout. The political turmoil sh...
Posted on: Mar 21, 2019 17:04:48 Read More

Forex - Dollar Steady After Fed's Dovish Turn; Brexit Fear Hits Sterling

The dollar is steadying early Thursday after falling sharply as the Federal Reserve all but swore off raising interest rates again this year – a swing that could signal the end of the whole policy tightening cycle. “The Fed’s concerns over the future inflation path are clearly stronger than anticipated and it seems that the hiking cycle really is now over,” said Lee Ferridge, head of multi-asset strategy, the Americas at State Street Global Markets. The dollar inde...
Posted on: Mar 21, 2019 09:23:04 Read More

Likely Brexit delay ushers more uncertainty for the pound

Sterling fell by a third of a percent on Wednesday as investors remained wary about the prospects of the British currency as Prime Minister Theresa May requests a short delay to Brexit after her failure to get a divorce deal ratified. Though markets have raised expectations that a delay was inevitable, a likely extension leaves the Brexit divorce uncertain, with options including leaving with May's deal, a longer delay, a disruptive exit or even another referendum. The British currency fe...
Posted on: Mar 20, 2019 10:37:33 Read More

Currencies Need a ‘Proper Crisis’ to Start Swinging Again

Only a crisis is likely to awaken market volatility from its deepest sleep in more than four years, according to strategists. A JPMorgan Chase & Co (NYSE:JPM). measure of price swings in global currencies has dropped to the lowest level since September 2014 as the world’s largest economies show signs of slowing and global central banks signal caution in terms of their future monetary policy. With officials on hold, and few interest-rate increases forecast this year, volatility in the ...
Posted on: Mar 19, 2019 16:35:00 Read More

Sterling Steadies After Brexit Blow; Dollar Drifts Lower Pre-Fed

The British pound is opening Tuesday on a firmer footing after losing nearly 1% against the dollar and euro on the latest outbreak of Brexit-related volatility. Sterling had slid after Prime Minister Theresa May’s plan to force another vote on her EU Withdrawal Agreement was struck down for procedural reasons by the Speaker of the House of Commons John Bercow. "What Speaker Bercow has done has made it much more likely that we don't deliver Brexit," Nadhim Zadawi, a junior minister for Br...
Posted on: Mar 19, 2019 09:54:09 Read More

Rouhani says Iran will file legal case against U.S. for sanctions

Iranian President Hassan Rouhani said on Monday that the government would file a legal case in Iran against U.S. officials who imposed sanctions on the country as a precursor to action in international courts. Rouhani said in a speech broadcast live on state television that U.S. sanctions had created difficulties including a weaker rial currency that has fed into higher inflation. The United States reimposed sanctions on Tehran after U.S. President Donald Trump chose last May to abandon Iran's...
Posted on: Mar 18, 2019 10:34:24 Read More

Dollar Weakens While Pound Holds Gains Ahead of New Brexit Vote

The euro hit a two-week high against the dollar in early trading in Europe Monday, as the greenback continues to suffer from weak economic data out of the U.S. on Friday that strengthened expectations for a Federal Reserve interest rate cut later this year. Futures contracts on dollar interest rates are now indicating a 40 percent chance of a cut by the Fed later in 2019, despite assurances from many of its officials that the economy is still robust. However, a mixed labor market report, a lack...
Posted on: Mar 18, 2019 10:31:43 Read More

Central banks stuck in holding pattern

A host of central banks meet next week, but with a global economic slowdown underway alongside political and trade strife, they are unlikely to tinker much, if at all, with policy. An escalation in the U.S.-China trade war would trigger a sharper downturn, economists say, putting major central banks on a more cautious path just as they want to wind down crisis measures. On Wednesday, the United States Federal Reserve will release its updated forecasts for the U.S. economy, and its latest dot p...
Posted on: Mar 15, 2019 16:08:08 Read More

World's Worst Major Currency Is Spurring Talk of Intervention

Sweden’s krona is so weak that some of the biggest Nordic banks say policy makers may take action to prop it up. The krona is the worst major currency this year, trading near the lowest since the global credit crunch in 2009, even though the Riksbank has started to lift its crisis-era stimulus. SEB AB and Nordea Bank Abp believe policy makers concerned about volatility and the impact on inflation may step in to intervene verbally if it slips further to approach a nine-year low of 11 per e...
Posted on: Mar 15, 2019 13:05:39 Read More

EU lawmakers split over whether to start trade talks with U.S.

European Union lawmakers failed to offer a view on Thursday on whether to start negotiations with the United States on removing tariffs for industrial goods, a move designed to ease trade tensions between them. In a confusing vote, the European Parliament passed by a narrow majority a series of amendments against beginning talks, but then voted down its own resolution on the topic, meaning in effect it took no view. The resolution would not have been binding, but parliament will have to approv...
Posted on: Mar 14, 2019 16:54:26 Read More

Ready to Invest in Venezuela? Oil Banker Ponders $3 Billion Fund

Maynard Holt is already thinking about how you can invest in Venezuela. The chief executive officer of Houston-based energy investment bank Tudor, Pickering, Holt & Co. said Wednesday he’s exploring the formation of a fund as big as $3 billion to invest in Venezuela one day after fielding a question about it at an industry conference. Holt was asked by a moderator at the CERAWeek by IHS Markit conference what he would need if a fund was formed to pump capital into the troubled Latin ...
Posted on: Mar 14, 2019 16:52:11 Read More

U.S. Crude Oil Inventories Fell by 3.9M Barrels Last Week: EIA

 U.S. crude oil inventories rose more than expected last week, the Energy Information Administration said in its weekly report on Wednesday. The EIA data showed that crude oil inventories fell by 3.86 million barrels in the week to March 8. That was compared to forecasts for a stockpile build of 2.66 million barrels, after a surge of 7.07 million barrels in the previous week. Prior to the release, oil prices were climbing after news that the U.S. plans to implement further...
Posted on: Mar 13, 2019 14:51:31 Read More

Sterling extends gains as markets scent big loss for no-deal exit vote

Sterling extended gains across the board as expectations grew that lawmakers would vote against leaving the European Union in 16 days time without an agreement. Its gains were bolstered by a tweet from the BBC's assistant political editor that he was hearing Attorney General Geoffrey Cox had further legal advice which might help Prime Minister Theresa May win over lawmakers to her Brexit deal. The British currency has swung wildly between $1.30 and $1.33 in chaotic trading over the last 48 hou...
Posted on: Mar 13, 2019 14:41:50 Read More

Sterling plummets after UK attorney general says legal risks of Brexit unchanged

The pound fell sharply on Monday after Britain's Attorney General Geoffrey Cox said the legal risks to the United Kingdom of the Brexit backstop remained unchanged despite assurances from the European Union. The fell plunged 0.7 percent to a day's low of $1.3041. It had been as high as $1.3290 earlier in the session on hopes British Prime Minister May would eventually secure a deal before Brexit in less than three weeks. The pound also fell sharply against the euro, falling by one percent to t...
Posted on: Mar 12, 2019 14:26:02 Read More

Forex - Sterling Tanks on Brexit Legal Advice

The British pound fell by more than a cent against the dollar as the U.K. government's top lawyer effectively killed off any chance that the U.K.'s agreement on leaving the EU would pass a vote in parliament later Tuesday, reviving the specter of a disorderly 'no-deal' Brexit. Attorney-general Geoffrey Cox said last-minute tweaks to the withdrawal agreement hammered out over two years by the U.K. and EU did not eliminate the risk that the U.K. could be trapped as a rule-taker in a customs union...
Posted on: Mar 12, 2019 14:18:31 Read More

UK business investment set to stay low on Brexit doubts - BoE's Haskel

BIRMINGHAM, England (Reuters) - British business investment will probably stay low for the next few years because uncertainty over what Brexit will mean for the country's economy is unlikely to lift quickly, Bank of England interest-rate setter Jonathan Haskel said on Monday. Britain might need more than the 21 months foreseen in the withdrawal agreement that Prime Minister Theresa May struck with Brussels last year -- but which still faces opposition in parliament ahead of the scheduled Brexit...
Posted on: Mar 11, 2019 14:45:11 Read More

Nearly 5,000 bankers in EU earn over a million euros a year - watchdog

LONDON (Reuters) - The number of bankers in the European Union paid over a million euros (847,523 pounds) a year rose in 2017 to nearly 5,000, even after regulators capped bonuses. Most of them were based in Britain, according to data from the European Banking Authority (EBA), but as the country is due to leave the bloc at the end of this month some highly paid bankers are expected to move from London to staff new hubs on the continent. EBA said on Monday that 4,859 bankers were paid more than...
Posted on: Mar 11, 2019 14:41:26 Read More

China stocks rally on stimulus hopes, weak GDP growth hits Aussie

By Shinichi Saoshiro  Asian stocks held their ground on Wednesday as Chinese equities rallied on stimulus hopes, although a resurgence in regional tensions capped broader gains with North Korea opting to restore part of a missile test site it had began dismantling earlier. Spreadbetters expected European stocks to open slightly lower following a dip on Wall Street, with Britain's FTSE falling 0.15 percent, Germany's DAX dipping 0.1 percent and France's CAC lo...
Posted on: Mar 6, 2019 10:15:21 Read More

Australia shares higher at close of trade; S&P/ASX 200 up 0.75%

Australia equities were higher at the close on Wednesday, as gains in the Gold, Metals & Mining and Resources sectors propelled shares higher. At the close in Sydney, the S&P/ASX 200 rose 0.75% to hit a new 6-month high. The biggest gainers of the session on the S&P/ASX 200 were Western Areas Ltd (AX:WSA), which rose 6.79% or 0.150 points to trade at 2.360 at the close. Pilbara Minerals Ltd (AX:PLS) added 5.71% or 0.040 points ...
Posted on: Mar 6, 2019 10:13:23 Read More

USD/CAD holds near key resistance levels with BOC meeting eyed

The pair is holding at the upper end of the swing region resistance around 1.3340-60 but upside is also being limited by the 76.4 retracement level @ 1.3384. These key resistance levels are continuing to keep a lid on price action as the focus now turns towards the BOC meeting later today at 1500 GMT.   The Canadian central bank is expected to keep rates unchanged but the question will be whether or not they take a more dovish stance in light of recent developments in the economy. Last Fr...
Posted on: Mar 6, 2019 10:11:12 Read More