Sterling suffered broad based selloff overnight as the UK parliament put Brexit back into uncertainty. But losses are so far limited as the Pound quickly stabilized. In short, the Parliament passed the proposal to ask Prime Minister Theresa May to go back to Brussels to renegotiate the Irish backstop into alternative arrangements. But EU has reinstated the stance that it won’t reopen negotiations.
In the currency markets, Australian Dollar is the strongest one in Asian markets today, after slightly stronger than expected Q4 CPI reading. New Zealand Dollar follows as the second. Swiss Franc is currently the weakest one , followed by Dollar and then Yen. The economic calendar is rather busy today. French GDP, Swiss KOF, Eurozone confidence indicators, Germany CPI and US ADP employment will also be watched. But the major focus will be on FOMC rate decision and press conference.
In Asia:
- Nikkei is currently down -0.26%.
- Hong Kong HSI is up 0.29%.
- China Shanghai SSE is up 0.09%.
- Singapore Strait Times is down -0.11%.
- Japan 10-year JGB yield is up 0.0003 at 0.004.
Overnight:
- DOW rose 0.21%.
- S&P 500 dropped -0.15%.
- NASDAQ dropped -0.81%.
- 10-year yield dropped -0.032 to 2.712.
