Despite the late winter storm sweeping across the east coast, the Department of Justice has announced that according to an FOMC official the show will go on. The storm has delayed the meeting between President Trump and German Chancellor Angela Merkel which has been rescheduled for Friday.
Sterling took a leg lower after reports surfaced that the Prime Minister will block a second Scottish referendum. While the Prime Minister may want to keep a united front as her Brexit Bill has finally been approved by Parliament, the political waters will be tricky to navigate. Scottish First Minister Nicola Sturgeon ran her campaign on a promise to hold a referendum should Brexit proceed and Scots show support for remaining within the EU. Sturgeon has promised to turn the 45% of those who voted for independence in 2014 “into a strong and positive majority.”
Oversupply in oil continues to be a concern for financial markets. The uptick in US production is now compounded by higher production globally as Saudi Arabia told OPEC that they reversed about 1/3 of January’s cuts in February. The news has oil-linked currencies on the back foot, with CAD lower and the Russian ruble down almost a percent against the greenback.
Economic sentiment rose in the euro area’s biggest economy according to the ZEW survey of economic sentiment in Germany. But while sentiment improved, the survey noted that the print was below the long-term average which they suspect is the result of uncertainty about the economic outlook, not least because of political risk.
EURUSD: Euro slightly lower after ZEW survey confirms that politics are still a concern for Germany.
GBPUSD: Sterling down, but off the lows after shaving off a cent against the USD. Prime Minister May said to block a second referendum in Scotland.
AUDUSD: Aussie dollar slightly down after NAB business survey shows drop in business conditions.
USDCAD: CAD weaker with oil prices after Saudi Arabia told OPEC they’ve reversed some oil cuts.