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Pound domination was the name of the game during today’s morning London session.

The pound did have some trouble against the higher yielding Aussie and Kiwi, though. The Greenback, meanwhile, got kicked broadly lower.

Major Events/Reports:

Commodities got clobbered – Commodities were broadly in retreat during the morning London session.

Precious metals got dumped.

  • Gold was down by 0.61% to $1,203.45 per troy ounce
  • Silver was down by 1.50% to $16.928 per troy ounce

The same can be said of base metals.

  • Copper was down by 0.46% to $2.696 per pound
  • Nickel was down by 2.19% to $9,602.50 per dry metric ton

Oil benchmarks, meanwhile, were also leaking red.

  • U.S. crude oil was down by 1.02% to $52.64 per barrel
  • Brent crude oil was down by 1.01% to $54.88 per barrel

Market analysts noticed the broad-based commodities slide but couldn’t pinpoint the catalyst. And we can’t really blame it on Greenback strength since the U.S. dollar index was down by 0.40% to 99.87 for the day, which would have made commodities more attractive.

We can probably safely attribute the weakness of precious metals on the risk-on mood, though. Precious metals are traditional safe-havens after all. The slide in oil prices, meanwhile, was attributed by some market analysts on speculation that the Energy Information Administration (EIA) will print a build-up in U.S. oil inventories.

Very risk-friendly day in Europe – There was risk-taking aplenty in Europe today, with practically all European equity indices well in the green.

  • The pan-European FTSEurofirst 300 was up by 1.00% to 1,443.59
  • The blue-chup Euro Stoxx 50 was up by 1.16% to 3,317.50
  • Germany’s DAX was up by 1.31% to 11,747.00
  • The U.K.’s FTSE 100 was up by 0.30% to 7,172.00

Even U.S. equity futures got a bullish boost.

  • S&P 500 futures were slightly up by 0.27% to 2,280.75
  • Nasdaq futures were slightly up by 0.39% to 5,116.38

Some market analysts say that the risk-on mood was due to very upbeat earnings reports, particularly for Banco Santander and Logitech. Other market analysts attributed the risk-on vibes to renewed hopes that Trump will push through with his fiscal stimulus plans.

Theresa May speaks – British PM Theresa May had a speech in Parliament earlier. And she announced then that:

“I set out that bold plan for a global Britain last week and I recognize there is an appetite in this house to see that plan set out in a white paper. I can confirm to the house that our plan will be set out in a white paper.”

According to the U.K. Parliament’s official glossary,

“White papers are policy documents produced by the Government that set out their proposals for future legislation. White Papers are often published as Command Papers and may include a draft version of a Bill that is being planned. This provides a basis for further consultation and discussion with interested or affected groups and allows final changes to be made before a Bill is formally presented to Parliament.”

Other than that, May was also asked about her upcoming meeting with U.S. President Trump. And she had this to say:

“We will be looking for a U.K.-U.S. trade deal that improves trade between our two countries that will bring prosperity and growth to this country … and I can assure … that in doing that we will put UK interests and UK values first”

Major Market Movers:

GBP – The pound was the one currency to rule them all during the morning London session, as pound pairs extended their gains after the U.K. Supreme Court voted against the government on the U.K. government’s authority to trigger Article 50 of the TEU without the approval of Congress.

Other reasons being cited by market analysts include, optimism ahead of Trump’s meeting with British PM Theresa May, as well as U.S. dollar dynamics, with the weak dollar pushing all pound pairs higher.

GBP/USD was up by 88 pips (+0.71%) to 1.2583, GBP/JPY was up by 75 pips (+0.53%) to 142.62, GBP/CAD was up by 72 pips (+0.44%) to 1.6498

NZD – The very risk-friendly environment in Europe allowed the Aussie to recover from its earlier fall. However, the risk-on vibes allowed the Kiwi to really shine, since the Kiwi was the second best-performing currency after the pound.

NZD/USD was up by 31 pips (+0.43%) to 0.7269, NZD/JPY was up by 19 pips (+0.22%) to 82.37, NZD/CAD was up by 14 pips (+0.15%) to 0.9530

USD – The Greenback was THE worst performing currency of them all. There was no clear reason for the broad-based weakness. However, some market analyst blame it on Trump’s earlier views that a strong dollar is undesirable.

USD/JPY was down by 23 pips (-0.20%) to 113.31, USD/CHF was down by 31 pips (-0.31%) to 0.9990, USD/CAD was down by 36 pips (-0.28%) to 1.3108

Watch Out For:

  • 2:00 pm GMT: U.S. HPI (0.4% expected, same as previous)
  • 3:30 pm GMT: U.S. crude oil inventories (1.5M expected, 2.3M previous)
  • 9:45 pm GMT: New Zealand’s quarterly CPI reading (0.3% expected, 0.2% previous)