As Brexit saga continues, the sterling rose above $1.3. Britain’s Labour said it was “highly likely” to back an attempt by lawmakers to prevent a disorderly no-deal Brexit.
British Prime Minister Theresa May’s proposed agreement on Brexit terms rejected by parliament last week. Since then, lawmakers have been trying to resolve the crisis. No option has the majority support of parliament.
If lawmakers back an amendment by lawmaker Yvette Cooper in a vote scheduled next Tuesday that could force Theresa May to ask the EU to delay Britain’s exit from the bloc on March 29.
May’s deal was rejected by a large majority last week. As expected, British Prime Minister Theresa May narrowly won a subsequent confidence vote.
With around two months to go until Britain is due to leave on March 29, investors advised caution around current levels.
But sterling is gaining as investors buy the currency, betting that a no-deal Brexit can be avoided if parliament exerts greater control over the process.
Strong employment data boosted the pound suggesting Britain’s labour market remained robust despite an economic slowdown ahead of Brexit.
START TRADINGForex – Commodities – Sterling rises above $1.3 – Brexit saga continues
Though the Bank of Japan struck a cautious note on the outlook for global growth, investors scooped up bargains in risky assets after a rocky start to the year.
Major currencies were hemmed in small ranges as attention shifted to the European Central Bank. The ECB meets on Thursday where market watchers expect it to acknowledge growing threats to the euro zone economy.
The U.S. dollar held near a three-week high, edging lower. Firmer stock markets and commodity currencies such as the Australian dollar prompted investors to trim their long dollar positions. Against a basket of its rivals, the dollar drifted 0.1% lower at 96.25.
The euro was broadly steady at $1.1367.
Sterling rose 0.6% to $1.3036 after gaining 0.5% in the previous session. It also rose for a third consecutive day versus the euro to 87.33 pence.
Oil prices rose as U.S. crude stocks fell and official data indicated slowing growth in U.S. shale oil output in the coming years. International Brent crude oil futures were up 32 cents, or 0.52%, at $61.82 a barrel by 1430 GMT. U.S. West Texas Intermediate (WTI) crude futures rose by 21 cents, or 0.4%, to $53.22.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.