The European Union agreed on Friday to London’s request for a Brexit delay but set no new departure date.
EU gave Britain’s divided parliament time to decide on Prime Minister Boris Johnson’s call for a snap election. “There was full agreement on the need for an extension,” an EU official said. Ambassadors to the 27 countries in the bloc met to discuss postponing Britain’s exit, less than a week before the current deadline of Oct. 31. The EU envoys, who met for about two hours, had been due to discuss the length of a third delay to Brexit. But diplomats decided to hold off to let political events play out in London.
Prime Minister Boris Johnson called for a general election on Dec. 12 to break Britain’s Brexit impasse. He conceded he will not meet his “do or die” deadline to leave the European Union next week.
More than three years after Britons voted 52%-48% to be the first country to leave the European project, the future of Brexit is unclear and the country still bitterly divided.
Sterling is down 1.3% so far this week, ceding half the gains made last week when it rallied the most in two years. It is still up 5% to the dollar this month as risks of a no-deal Brexit have tumbled.
START TRADINGForex – Brexit delay agreed at the last minute
The index which tracks the dollar against six major currencies was also flat at 97.66.
The euro was up slightly Friday, though close to the one-week low of $1.1094 it reached on Thursday.
The pound nursed losses versus the dollar and the euro on Friday after Prime Minister Boris Johnson’s call for an election heightened uncertainty over Brexit. Sterling fell slightly on the news and by 1130 GMT it was down 0.25% against the dollar at $1.2823. However, it held above the one-week low of $1.2790 hit on Thursday after Johnson called for an election. Versus the euro, it slipped 0.4% at 86.66 pence.
Oil prices steadied after suffering falls earlier in the session but were on track for strong weekly gains. Support from a surprise draw in U.S. inventories and possible action from OPEC and its allies to trim production further outweighed broader economic concerns. WTI crude stood at $56.17 a barrel and global benchmark Brent crude at $61.62 per barrel.
Gold prices rose to a two-week high on Friday, holding above the $1,500 an ounce psychological level. Weak U.S. economic data spurred expectations for another interest rate cut by the Federal Reserve. Spot gold hit its highest since Oct. 10 at $1,506.76 earlier in the session and was up 0.1% to $1,505.40 per ounce. The metal has gained 1.1% this week, heading for its best week in five.
Silver rose 1.5% to $18.04 per ounce, on track for biggest weekly gain since Sept. 20.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money