NY Open: Brexit, FOMC and Apple earnings handcuff traders
Summary: UK politics have sucked the trading energy out of FX markets.The US dollar is a touch firmer against the G-10 majors except for CAD, EUR and GBP, which are close to unchanged since the New York open.
USDCAD is getting a modicum of support from higher oil prices while trade talk worries undermine the antipodean currencies as well as the Swiss franc.
Prime Minister Theresa May conceded that her first Brexit plan, which was soundly defeated in the House of Commons, was a non-starter. Before that vote, she warned that the only alternatives to her deal was no deal or staying in the EU. Today she announced another alternative. It is reopening the withdrawal agreement with the EU (something which the EU has already ruled out). Also, today MPs are voting on both the Brady and the Cooper amendments, according to the Guardian. Then there will be another vote in a couple of weeks.
Wall Street opened flat to modestly higher in a cautious start to the session. Traders are waiting to see how the US Justice Department's actions against Huawei Technologies affects the US/China trade negotiations that start today. Treasury Secretary Mnuchin says Huawei and the Trade talks are two separate issues. Media reports from China beg to differ.
Apple (APPL: Nasdaq) fiscal Q1 earnings report is released after the close of business today. Traders are wondering if the downgraded revenue projections announced a month ago is all the bad news or whether the outlook has taken a turn for the worse. The stock is marginally higher in early trading.
UBS and Elon Musk have one thing in common; both want to sell Tesla. Musk wants to sell Tesla cars while UBS recommends selling Tesla share. UBS analyst Colin Langan cut his price target by $10.00/share to $220.00, yesterday. Wall Street traders ignored the news, preferring to wait for (TSLA: Nasdaq) Q4 results due tomorrow.
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