European update – Mixed trading continues

Major events pass without drama

Another mixed session looks on the cards on Thursday, very much continuing the trend this week as we move passed what could have been a volatile Wednesday unscathed and look ahead to a relatively calm end to the week.

Source – Thomson Reuters Eikon

The economic calendar is looking much more scarce compared to yesterday, with US jobless claims and various FOMC voters – vice Chair Richard Clarida, John Williams, James Bullard and Michelle Bowman – scheduled to speak. Coming on the back of the minutes yesterday, these comments will be of interest although with the Fed’s position quite clear, I question just how market moving they’ll be.

Is anyone actually happy with the Brexit extension?

Investors and businesses I’m sure will be relieved to learn that no-deal Brexit has been avoided on Friday, while the rest of us are left wondering why we potentially have another six months of this nonsense.

GBPUSD Daily Chart

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The extension has done nothing for the pound which priced this in a long time ago and remains towards the lower end of its trading range. In the absence of a Brexit deal and with the economy under-performing, facing another six months of uncertainty and maybe no rate hike as a result, the bullish case for sterling near-term may have significantly diminished.

Economic Calendar

For a look at all of today’s economic events, check out our economic calendar.

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