Price action in major currency markets remains very dull, with the light data and event calendar in the past 48 hours further subduing any clear directionality.
The Dollar trade-weighted index has edged 0.2% lower to a 13-session low but remains in the middle of its narrow 2% year-to-date range. The safe-haven Swiss Franc has shed a similar amount to trade at a 3-week low in the face of stronger global risk appetite (the S&P 500 has risen in 7 of the last 8 trading session) but again the Swiss Franc remains within the confines of a narrow multi-month range.
Sterling largely ignored this morning’s BRC retails sales release, showing a contraction of 1.1% yoy in March, with markets riveted on the next installment of the Brexit saga. Prime Minister May is currently meeting with German Chancellor Merkel and French President Macron to convince them to grant the UK another Article 50 extension and thus help the UK avoid leaving the EU without a deal on Friday 12th April. The European Council is due to give its official decision tomorrow at a special summit. Until then GBP/USD may well continue trading sideways around its current 1.305 level.
