09-APR-2019, TUESDAY

In today’s American session we get the US JOLTS Job Openings figure for February and later on the API weekly crude oil inventories figure. The USD slipped yesterday against a number of currencies, as soft economic data and gains by commodity currencies caused it to retreat. Financial releases such as the factory orders growth rate and the recent surge in oil prices caused the USD to retreat. Financial analysts pointed out that the greenback’s strength peaked on Friday as the US employment report was out, yet was not able to find traction since. Also they pointed out that themes such as Brexit and the US-Sino talks may start running out of steam and fail to provide incentives for the markets. Also they mention that on the contrary there seems to be a risk on mood in the markets as worries for a global slowdown seemed to ease somewhat.
The pound found some support yesterday, yet remained in check, as nervousness in the markets regarding Brexit talks remains high. Theresa May seems to be seeking a compromise with Jeremy Corbyn on the terms of Brexit in order to obtain the necessary majority in the UK Parliament. Media reported that UK’s PM could offer to remain in a permanent customs union with the EU in order to win support from the Labour party. At the same time Theresa May is to meet Macron and Merkel ahead of the EU summit on Wednesday and EU diplomats seem to settle to the idea of offering an extension despite the lack of progress. In the inner political stage, Tory hard Brexiteers seem to be in an effort oust the PM, as they fundamentally disagree with her efforts. We expect volatility for the pound to rise again as the stakes for the UK are getting higher and the EU summit draws near.