Sterling is down around 0.3% after three lawmakers resigned from Prime Minister Theresa May’s ruling Conservative party.
It had traded at $1.3031 before the announcement by the lawmakers, long critical of May’s Brexit strategy to leave the EU. Sterling also extended losses versus the euro.
On the other side of the Atlantic Ocean, the U.S. dollar paused on Wednesday. Traders positioned ahead of the release of monetary policy minutes.
The dollar, measured against a basket of currencies, edged higher to 96.591, below a two-month high hit last week.
Demand for the greenback has ebbed on optimism that a fresh round of talks between China and the United States would help resolve their trade conflict.
The benchmark 10-year U.S. Treasury yield fell sharply to an 11-day low on Tuesday ahead of the Fed meeting minutes. US Central bank’s meeting minutes are due later on Wednesday further dampen demand for the dollar. The minutes from the January Fed meeting will be closely watched following a dovish statement at that review.
START TRADINGForex – Commodities – Sterling is down on Brexit resignations
The yen fell another 0.3% against the dollar to 110.95 after disappointing trade numbers showed Japanese exports fell the most in two years in January. The yen had taken a hit on Tuesday after Bank of Japan Governor’ statements. He said that the central bank was ready to ramp up stimulus measures if sharp yen rises hurt the economy.
Oil fell on Wednesday after the U.S. government said shale output would rise to a record next month. Such statements dented a rally that sent prices to their highest this year.
Brent futures eased by 53 cents to trade at $65.92 a barrel by 1312 GMT, still within sight of Monday’s high for the year of $66.83. U.S. futures were at $55.77 a barrel, down 31 cents, having touched a 2019 peak of $56.39 earlier.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.