The British parliament will debate and vote on Prime Minister Theresa May’s Brexit plan B on Jan. 29.
As expected, British Prime Minister Theresa May narrowly won a confidence vote overnight. However, she invited other party leaders for talks to try to break the impasse on a Brexit agreement. An outline for Plan B is due by next Monday.
May’s deal was rejected by a large majority earlier this week. Leadsom said the prime minister would put forward a motion and make a statement on her next steps on Monday.
However, UK in deadlock over Brexit Plan B as May and Corbyn double down. Yet there was little sign on Thursday that either of the two major parties were prepared to compromise on key demands.
An anti-climactic end to the latest chapter in the Brexit saga offered sterling a moment’s peace. Pound firms as traders ramp up bets on soft Brexit.
Indeed, trading in currency options markets show an increasing bias towards bets that Britain will extend its deadline to leave the EU. This is a positive sign for sterling in the near term.
START TRADINGForex – Commodities – May survived no-confidence vote – Brexit plan B soon
The U.S. dollar was mixed, easing against the yen to 108.80 but flat versus the euro at $1.1400. The dollar index was barely moving too at 96.043 as a drop in euro zone bond yields also helped.
The pound also firmed towards a two-month high against the dollar. It was trading 0.3% up at $1.2914, inching towards a mid-November high of $1.2930.
The euro held at $1.1398, broadly flat against the dollar. It briefly hit a low of $1.1371 in the Asian session, its lowest since Jan. 4. The single currency has fallen 1.7% over the last week as weak data has weighed.
Against the euro, the pound firmed to 88.19 pence, its strongest level since late November.
In commodity markets, palladium hit record highs thanks to increasing demand and lower supply. Further, gold was little changed at $1,294.91 per ounce.
Oil prices eased as traders worried about the strength of demand in the United States after its gasoline stockpiles grew last week more than analysts had expected.
U.S. crude futures CLc1 fell 38 cents to $51.93 per barrel. Brent CLOc1 slipped 40 cents to $60.92.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.