GBP
GBPUSD dropped from 1.3165 to 1.3067 yesterday afternoon after Theresa May was given a mandate to reopen negotiations with the European Union about the Ireland backstop agreement. A spokesman for EU President Donald Tusk said: “dream on.” Actually, he said, “The backstop is part of the withdrawal agreement, and the withdrawal agreement is not open for re-negotiation.”
EUR
EURUSD traded sideways in a 1.1425-1.1448 band, trading with a modestly negative bias due to soft Eurozone data. January Consumer Confidence, Business Climate and Economic Sentiment were below forecasts.
AUD
AUDUSD rallied on the back of higher CPI (Actual 1.8% vs forecast 1.7%, q/q) and firmer commodity prices.
US ADP employment and Pending Home Sales data are due today but should not have much impact on trading. Traders will be looking for news from the China/US trade talks today.
CAD
USDCAD opened at the bottom of its overnight ranges. A rebound in WTI oil prices and demand for commodity block currencies weighed on the currency pair. Traders may be leery about expectations for further downside ahead of Thursday’s GDP data. November GDP is expected at -0.1%.
Today’s Range 1.3170-1.3250