Sterling was supported by hopes that political pressure will trigger approval for the Withdrawal Agreement.

The dollar was undermined by fragile manufacturing data, expectations of a dovish Federal Reserve stance and increased confidence in the global outlook with net EUR/USD gains.

Sterling was supported by hopes that political pressure will trigger approval for the Withdrawal Agreement, but GBP/USD hit tough resistance near 1.3300.

Crude was supported by on-going supply concerns and hopes for an improvement in global demand conditions.

Commodity currencies were underpinned by the solid crude tone and strength in iron ore prices as well as hopes for a global growth recovery later in 2019.

Equity markets made headway despite talk of a further delay in a US-China trade deal.

Precious metals struggled to make headway despite a softer US dollar tone as defensive demand faded.

Sterling moved higher during Friday’s New York session with speculation that the Northern Ireland DUP was moving closer to supporting the Withdrawal Deal, although choppy trading persisted. The government reiterated that any extension to Article 50 was liable to be prolonged if the deal was not passed, increasing pressure on Conservative MPs to back the deal.

GBP/USD closed around 1.3280 with tough resistance near 1.3300 while EUR/GBP found solid support around the 1.1700 area.

Latest CFTC data still recorded a net short speculative, Sterling position which will maintain the potential for further short covering if the political deadlock is broken. Talks continued over the weekend and there was evidence that some MPs were ready to back the Withdrawal Deal, but not enough to secure victory and Chancellor Hammond warned that the vote may not go ahead unless the government was confident of victory.

The British Chambers of Commerce warned that investment was set to decline at the fastest rate for 10 years and GBP/USD consolidated below 1.33 on Monday while the Euro rallied.

Economic Calendar

10:00Trade Balance (Jan)-8.0B17.0B
11:00German Buba Monthly Report--
12:30Foreign Securities Purchases (Jan)--18.96B
12:30Foreign Securities Purchases by Canadians (Jan)--0.43B
13:15ECB's De Guindos Speaks--
14:00Cap Goods Ship Non Defense Ex Air (MoM)-0.80%
14:00NAHB Housing Market Index (Mar)6362
14:00French 12-Month BTF Auction--0.52%
14:00French 3-Month BTF Auction--0.54%
14:00French 6-Month BTF Auction--0.54%
15:10ECB's Praet Speaks--
15:303-Month Bill Auction-2.41%
15:306-Month Bill Auction-2.46%
21:00Westpac Consumer Sentiment (Q1)-109.1
22:00RBA Assist Gov Kent Speaks--

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.