While news concerning Theresa May’s ability to present draft Brexit proposal for discussion at Sunday’s EU leaders’ meet gave a sigh of relief to Pound Bulls, the EUR also remained positive as it showed the region’s capacity to escalate the matters on time.
Not only positive updates from EU-UK but absence of negative statements from either US or China relating to trade-deal also cut risk-safety demand of the greenback, which in-turn was aptly capitalized by the JPY & the Gold. However, Crude’s extended south-run, due to updates from Saudi Arabia that it has exported record oil, coupled with weakness at commodity-basket, did hurt the AUD, the NZD & the CAD.
Other than aforementioned data-points, qualitative catalysts like developments at Brexit, market speculations for Fed’s upcoming rate-hikes and the U.S.-China trade relations are also likely to play their role. It should also be noted that Italy has given its consent to reconsider budget and hence the EU-Italy political drama may acquire less attention.