USD has little say in present market price action

Published date: 14/03/2019

Today's US data is very much of a secondary nature, and with all eyes on the Brexit process in the UK, attention seems to be rather focused away from the broader themes.  
Initial claims on the week came in higher than expected at 229k and import and export prices in the US were both better than forecast, but import prices fell by 1.3% which could signal softer inflation readings ahead.  Export prices rose by 0.6% which will be viewed in a net positive light.  

Once again, the USD is showing little reaction, with the most active pair being Cable as the market follows the debate today in the UK on extending Article 50 and how long this should be.  Earlier on we saw Cable testing above 1.3300, but this has since been quashed and traders are fighting it out in the mid 1.3200's.  

EUR/USD is very much keeping a tight leash on 1.1300, but the overriding driving force here seems to be EUR/GBP, which looks reluctant to push aggressively below the 0.8500 mark.  If the cross rate makes some sustained progress below 0.8750, then we may see EUR/USD following a little closer, with modest resistance above 1.1330 having held well last night and this morning.  

USD/JPY is again keeping it tight, but is now a touch higher in the mid 111.00's, with tentative signs here that we are perhaps angling for a test of 112.00 again, though this will depend to some degree on how US stocks perform later on today.


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