FX Update: The dollar traded mixed
FX Update: The dollar traded mixed, gaining sharply agains the euro following underwhelming PMI data out of the Eurozone, while concurrently losing ground to the pound, which traded firmer after the EU granted a delay in Brexit. The U.S. currency also posted gains against the dollar bloc currencies, which came under pressure concomitantly with flagging global stock markets and commodity prices, while at the same time losing ground to the yen, which picked up a degree of safe haven demand. The biggest mover out of the main currencies analysts keep tabs on was EUR-GBP, which showed a net decline of 0.8% heading into the New York interbank open. EUR-USD was off by 0.5%, at 1.1307 bid, earlier printing a nine-day low at 1.1288, which was the culmination of a one-big-figure drop, extending the correction from the six-week high that was seen on Wednesday at 1.1448. The Eurozone composite PMI came in at 51.3 in the flash estimate for March, off the median forecast for 52.0 and declining from 51.9 in February. Added to anecdotal evidence of prevailing Brexit-related disruption, a bleaker picture of the Eurozone has taken view. The 10-year Bund yield was down another 3.6 bp, building on yesterday's 4 bp decline. Cable settled near 1.3150 after recovering from yesterday's 1.3004 low. USD-JPY ebbed back under 110.50 after closing yesterday near 110.80, but had remained above yesterday's six-week low at 110.30. Euro underperformance drove EUR-JPY into 11-day low terrain. Japan's nationwide core CPI undershot expectations at 0.7% y/y in February.