FX Update: The dollar majors have been directionally challenged
FX Update: The dollar majors have been directionally challenged today, with little net change seen. Most pairings remained comfortably within ranges seen on Friday, with the absence of U.S. markets made for a noncommittal mood. Risk appetite in global markets turned toward the more pessimistic side of the balance, with European stock markets and S&P 500 futures posting moderate losses. The IMF warned that the Sino-U.S. trade war and a weakening European economy could lead a sharp global slowdown. Data also showed China's growth in 2018 was, at 6.6%, the slowest annual rate since 1990, and Fitch reported that defaults on Chinese corporate bonds rose to a record high in 2018. As for the main currencies, EUR-USD drifted moderately lower, then settled around the 1.1360-70 mark, above Friday's 17-day low at 1.1353. USD-JPY plied a narrow range within 109.51-70. Sterling saw a modest jump into the London fix, which lifted Cable to an intraday high at 1.2900 and pushed EUR-GBP to an intraday low, at 0.8811. UK Prime Minister May was addressing parliament at the time of writing, but key EU officials had already pre-emptied her by saying her ideas to rework the Withdrawal Agreement deal, which was heavily defeated in the House of Commons last week, wouldn't fly. There was also a motion in the works to amend legislation so as to enable the House of Commons to veto a no-deal Brexit, which looks to have broad support from across five parties.