FX Update: The Dollar majors seen little directional shift
FX Update: The Dollar majors seen little directional shift for the most part, though the Pound has seen moderate across-the-board weakness ahead of tomorrow's Brexit crunch day in the UK's Parliament. EUR-USD has been orbiting the 1.1400 level, printing a high in Asia at 1.1426 and a low in London at 1.1390. USD-JPY has settled around 109.30-50, failing to sustain modest losses, which had been concurrent with a drop from highs in Asian equity markets, with some indexes turning negatives, and with European stock markets trading more decidedly negative. S&P 500 futures have declined by 0.5%. The three-week hiatus in the partial government shutdown in the U.S. prompted equity buying in early Asia, but sentiment shifted to the more cautious side of the spectrum ahead of this week's U.S.-China trade talks and with the Brexit process near the point where the rubber hits the road, which has the potential to negatively affect economy activity across Europe over the near- to medium-term. Cable dipped by about 0.3%, and the pound saw a similar magnitude of decline against the Euro and Yen. The Brexit situation is at a complex crossroads, with a number of amendments due to voted on tomorrow in Parliament, including ones that seek to either delay Brexit from March 29, or to legislate against there being a no-deal Brexit, or opens the way to a second referendum on EU membership. Parliament is also due to vote on the Prime Minister May's Withdrawal Agreement, which lacking a concession from the EU to write-in an amendment that legally time limits the Irish backstop, or allows the UK to unilaterally withdraw from it, looks set to be rejected.