Brexit news dominated early Asian trading. Boris Johnson tabled his motion for a special vote. The Prime Minister lost the vote, which was his sixth loss. Earlier, the proposal to block No - deal became law. After another loss, Boris announced the suspension of parliament's work for five weeks.
In addition to the lack of almost any events and news, there was still important economic data to monitor. The most significant were China's inflation figures. CPI with a slight positive change came out, but the PPI was disappointing. Business confidence in Australia has also collapsed. The Australian dollar as a result of the data sank, but kept its small range for the session. The Kiwi managed to record minimal growth.
The euro, the Swiss franc and the Canadian dollar remain slightly declining against the US dollar.
During the Tokyo session, USD / JPY recorded growth and reached levels at 107.50, after which the price stabilized around 107.40. Gold lost positions, going below $ 1500.
Indicatively, European futures point to a weaker opening following the mixed ending of the Asian session. Today, we expect the mood to remain under the influence of news about the trade war and the small amount of expected data on the calendar. Markets will also assimilate data from China. Next is the ECB meeting on Thursday, with market participants already starting to listen to positioning and possibly what the central bank can do about its monetary policy.
We will expect cash flows to cautiously target more defensive assets, but market players will also pay sufficient attention to today's data, especially in Europe. UK labor market data will be key and shed more light on whether the UK economy is approaching a recession.
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