Daily FX Wrap: Sterling shines as Dollar lacks lustre and Loonie loses ground late on

GBP

The Pound appears to be revelling in the relative lack of Brexit-related headlines during the UK Parliament recess, or at least relieved with the break from almost constant Whitehall media coverage. However, low level talks between the Tories and Labour are ongoing over Easter and are said to have been more in-depth and positive than anticipated thus far, according to Foreign Secretary Hunt. Cable is inching above 1.3100 and closer to near term resistance in the form of last Friday’s 1.3132 peak and the 30 DMA, while Eur/Gbp has slipped back from near 0.8650 highs towards 0.8520 even though the single currency is holding firm vs the Dollar and other G10 counterparts.

CAD

The Loonie crept up on the blindside and largely shrugged off weaker crude and poor Canadian existing home sales to probe back above 1.3300 vs its US peer. However, gains were erased and more to a fresh low circa 1.3390 on the back of the BoC’s Spring Business Outlook Survey as the headline index turned a tad negative and the snapshot is for a moderation from high levels of domestic and foreign demand across most regions, albeit with investment and employment intentions still positive. Back to Usd/Cad, last week’s high was 1.3396 and then 1.3400 will be a round number target. 

EUR/AUD/NZD/JPY/CHF

The Euro has lost some of its early momentum vs the Buck and across the board as Eur/Usd stalled ahead of resistance at 1.1324 and 1.1341 (Fib and 200 WMA respectively). However, the headline pair remains technically firm if not outright bullish while above another Fib level at 1.1284 and as long as the Usd does not continue to rebound in wake of an upbeat NY Fed manufacturing survey. On that note, the DXY has pared losses from 96.780 to retest the top of Monday’s range so far (96.937), but not quite 97.000 and it remains to be seen whether it can close above the 30 DMA (96.891). Meanwhile, Aud/Usd and Nzd/Usd are off best levels within 0.7182-64 and 0.6782-56 respective parameters, but the Aussie in particular remains underpinned as Aud/Nzd crosses 1.0600 amidst positive reports surrounding US-China trade (former said to have relaxed industrial subsidy demands and latter reportedly mulling whether to shift agricultural tariffs in response to a request by Washington). Elsewhere, Usd/Jpy is pivoting 112.00 and its ytd high vs 200 WMA (112.14-111.98), with BoJ Governor Kuroda blaming weak wage growth for the lack of overall inflation, adding that it remains possible to lower long term and rates in general if requited, while Usd/Chf is hugging higher ground between 1.0010-39, like Eur/Chf within a 1.1325-46 band.

EM 

The Lira continues underperform and inch closer to recent lows vs the Greenback on domestic politics, diplomatic strains and more disappointing Turkish data (as jobless rate and budget balance both deteriorated). Moreover, some reports about an investment meeting at the IMF/World Bank over the weekend have been far from encouraging with Usd/Try currently hovering near 5.8000.

15 Apr 2019 - 15:46- Forex- Source: RANsquawk

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