British Pound Steady as Brexit-Inspired Selloff Fizzles

By Ilya Spivack of Daily FX

Forex Trading News & Analysis • Mar 30, 2017 at 5:21 AM EDT

The British Pound corrected gently higher in Asian trade following yesterday’s losses. Sterling spiked down to a two-month low against its major counterparts but promptly recovered, erasing the lion’s share of intraday losses.

The British Pound corrected gently higher in Asian trade following yesterday’s losses. The currency fell as the UK government invoked Article 50 of the Treaty of Lisbon, formally launching the Brexit process. Follow-through proved limited however, as expected. Sterling spiked to a two-month low against its major counterparts but promptly recovered, erasing the lion’s share of intraday losses.

German CPI data headlines the economic calendar in European hours. The benchmark year-on-year inflation rate is expected to edge down to 1.8 percent in March from 2.2 percent in February, marking the first downtick in 11 months. The outcome may mean relatively little for the Euro however considering its limited implications for near-term changes in ECB monetary policy.

Later in the day, a revised set of fourth-quarter US GDP figures enters the spotlight. An upgrade in the annualized growth rate is expected to take it from 1.9 to 2 percent, but this is probably too small of an improvement to re-energize Fed rate hike speculation in earnest (absent a dramatic deviation from expectations, of course). That will probably leave the US Dollar in digestion mode.

What do retail traders buy/sell decisions hint about FX market trends? Find out here!

Asia Session

British Pound Steady as Brexit-Inspired Selloff Fizzles

European Session

British Pound Steady as Brexit-Inspired Selloff Fizzles

** All times listed in GMT. See the full DailyFX economic calendar here.

Disclosure:

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