The pound is soaring on news that Theresa May has secured an ‘improved deal’ with the EU. These improvements leave a whole world of grey area though, with the changes being more language adjustments that wholesale changes. It remains to be seen if this will be enough to push the deal through parliament. Politics, as ever will be paramount.
The pound has jumped 1.50% against the US dollar so far this week, with gains of over 1.62% against the Japanese yen. The EUR/GBP is off by 1.26% as the pound out-performs the euro.
Away from the pound, dollar pairs generally performed well yesterday, with the AUD/USD rising above 0.7050, with small losses this morning.
The EUR/USD is following a similar pattern, with follow on buying yesterday that set the pair above 1.1250, with moderate selling this morning.
The dollar index is performing better this morning, with the USD/CAD nudging back above 1.3400 today after two days of losses.
The USD/CHF continues to perform well though, rising again above the 1.0100 level and holding so far.
Yen pairs are mixed, with the USD/JPY holding above 111.00. The AUD/JPY is falling back slightly, but holding above the 78.00 level. The EUR/JPY rebounded above the 125.00.
Today, we have UK GDP at 09.30, with Manufacturing Production at the same time.
US CPI and core CPI are at 12.30.
US FOMC member Brainard speaks at 12.45.
At parliamentary Brexit vote is scheduled today.
The USD/JPY has been grinding higher since the new year flash crash and that could well continue into the remainder of the year.