’Meaningful vote’ to take place tomorrow


Sterling rose last week with GBP/USD topping out at a seven-week high on Friday at 1.2867. Gains on Friday were spurred by reports that cabinet ministers were looking to delay Brexit.

Parliament are still scheduled to vote on Theresa May’s deal tomorrow with weekend press reports suggesting a Plan-B is being drawn up as she is expected to lose. In her speech this morning, the Prime Minister urged colleagues to support her deal ‘’for the country’s sake’’ ahead of tomorrow’s historic vote.

Besides Brexit, UK inflation figures are due on Wednesday followed by retail sales on Friday.


The US Dollar saw a sharp drop last Wednesday weighed by dovish comments in FOMC minutes – the Dollar Index touched a twelve-week low on Thursday at 95.03. Comments from Federal Reserve Chair Jerome Powell were slightly more neutral however and US CPI data was in line with expectations which helped the Dollar claw back losses into the weekend.

On the data front, we await PPI tomorrow, retail sales and import prices on Wednesday and industrial production on Friday.


The Euro was weighed by a string of weaker-than-expected macro releases last week, including German industrial production which sparked fears of a recession in the bloc’s largest economy.

EUR/USD surrendered the 1.15 handle on Friday as banks pushed back their rate bets for the ECB which were expected to hike rates in the Summer.

Looking ahead, industrial production figures are due shortly, ahead of trade data tomorrow and CPI on Thursday.


The Japanese Yen steadied last week following the sizeable swings we saw in the first few trading days of the year. Domestic impulses were limited with investors focused on broader risk sentiment which was largely swayed by developments in the US-China trade dispute.

USD/JPY lost some minor ground this morning as equity markets moved lower but has held above 108 for now.

CPI figures are out on Thursday alongside possible comments from BoJ Governor Kuroda while industrial production figures follow on Friday.


The Swiss Franc saw some notable swings last week, falling sharply on Thursday amid a rise in risk sentiment before bouncing back on Friday – EUR/CHF topped out at a its highest level since the first day of the year at 1.1342.

From a domestic standpoint, CPI data came up short of expectations on Wednesday but only provided a brief weight on the Franc.

PPI figures are the only notable release this week, due on Friday.


The Australian Dollar rose last week, tracking a rally in the Chinese Yuan while domestic impulses were also supportive including stronger-than-expected retail sales data released on Friday.

AUD/USD hit its best level since December 13th on Friday at 0.7236.

Westpac consumer confidence is out tomorrow followed by home loans on Thursday and new home sales on Friday.


The New Zealand Dollar finished Friday as one of the strongest G10 currencies, rising alongside the Chinese Yuan supported by a broad improvement in risk sentiment. NZD/USD hit its highest level since December 19th on Friday at 0.6777.

Looking ahead, NIZER confidence is out tomorrow followed by PMI on Friday.


The Bank of Canada stood still last week although lower growth forecasts provided a brief weight on the Canadian Dollar. Of more interest to investors however were the choppy moves seen in the oil markets and USD/CAD dropped to a six-week low of 1.3180 on Wednesday as US crude futures pushed above $52 a barrel.

ADP employment data is due Thursday followed by CPI on Friday.


The Swedish Krona touched its lowest level versus the Euro since January 3rd earlier this morning but rallied in recent trade after Swedish CPIF data surprised to the upside. Moves last week were relatively muted meanwhile with little reaction shown to movement in Swedish politics with the Social Democrats said to have reached a deal with other parties to form a government.


The Norwegian Krone strengthened last week, supported by a myriad of factors including stronger-than-expected domestic CPI data, rising oil prices and a broad improvement in risk sentiment to end the week. EUR/NOK bottomed out at a five-week low of 9.7356 on Friday before finding support and has crept back above the 9.8 today.

A light week on the data front with only trade figures tomorrow of note.

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