Sterling extended gains on Monday on signs some pro-Brexit lawmakers were increasingly willing to compromise with Prime Minister. The dollar edged higher against its rivals on Monday on the back of widening weakness in the euro.
Sterling extended gains
Media reports over the weekend also suggested London was softening its demands of the European Union in renegotiating parts of the Brexit withdrawal deal. The British parliament is set to vote on May’s deal next week, although the vote could be held sooner. If it fails to pass, lawmakers will get to vote on whether to delay Brexit, currently set for March 29.
Hopes for a delay to Brexit and bets that a no-deal Brexit is a far less likely outcome sent sterling surging last week. The British currency is up 3.7 percent against the dollar so far in 2019 and 4.7 percent versus the euro.
Sterling rose as much as 0.5% against the euro to 85.60 pence before settling at 85.79 by 1115 GMT. Versus the dollar, the pound added 0.1% to $1.3218. Last week sterling rose as high as $1.3351 as investors piled back into the currency in the belief a disorderly no-deal Brexit was far less likely.
Dollar extends rising streak
While the Federal Reserve has pressed the pause button on its multi-year rate hike cycle, higher U.S. bond yields in relation to peers means the interest rate advantage still lies firmly with the United States, especially against the backdrop of receding fears about the outlook of the global economy.
The dollar traded at 111.96 yen, near a 10-week high of 112.08 on Friday. Against a basket of its rivals, the dollar was a shade higher at 96.62. It rose 0.4% in February, its biggest monthly rise since October 2018.
Much of the weakness in the London session coincided with a broadly weaker euro. The single currency slipped across the board, falling 0.3 percent against the dollar and 0.2 percent against the euro.
START TRADINGCommodities – Oil prices rise on trade deal hopes, OPEC supply cuts
Oil prices rose on Monday, buoyed by OPEC output cuts and reports that the United States and China are moving closer to a deal on a tariff row that has slowed global economic growth.
Brent crude futures were up $1.13 at $66.20 a barrel by 1449 GMT. U.S. West Texas Intermediate (WTI) crude futures were up $1.08 at $56.88.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.