The British currency held above $1.31 on Friday after recovering overnight when EU offered a last chance for Britain. EU leaders gave Prime Minister Theresa May a two-week notice to arrange how Britain will leave the European Union.
Sterling had plunged towards $1.30 on Thursday. It was its biggest one-day fall of 2019 as fears mounted that Britain would crash out of the EU on March 29. The pound was up 0.1% at $1.3117 by 0845 GMT. Further, its gains versus the euro were as high as 0.7% – mainly because of the weakness in the single currency following disappointing German PMI.
The EU has said Britain can have a short delay to Brexit, as requested. However, May must first win parliamentary approval for her withdrawal deal that sets out the future relationship between London and its biggest trading partner. She has already lost two attempts to secure parliamentary support. With the odds stacked against her for another vote next week the risk of a no-deal Brexit rose sharply.
START TRADINGForex – Last Chance for Brexit – Pound recovers, euro slips
The sharp drop in the single currency, its biggest fall in two weeks, rippled over to other currencies.
The euro slipped more than 0.5% on Friday to below $1.13. A much weaker-than-expected German manufacturing survey and falling bond yields prompted traders to cut their positions. The single currency fell 0.7 percent to a 10-day low at $1.1288. Against the yen, it fell nearly 1%.
The drop in the euro pulled the dollar higher against a broad basket of its rivals where the euro forms the dominant component. Greenback was trading 0.3% higher at 96.71.
Oil fell further from 2019 highs on Friday as focus shifted to a lack of progress in U.S.-China trade talks. However, prices found support from supply cuts led by producer club OPEC and by U.S. sanctions on Iran and Venezuela.
Brent crude futures were at $67.11 per barrel, 75 cents below their last close and broadly flat on the week. The contract hit a four-month high of $68.69 on Thursday. U.S. West Texas Intermediate (WTI) futures were at $59.40 per barrel, down 58 cents. WTI marked a 2019 peak in the previous session at $60.39 and is set for a third consecutive week of gains.
Gold prices rose on Friday. Disappointing economic data from the euro zone added to concerns of a slowdown in global growth and drove investors away from riskier assets. Spot gold was up 0.2% at $1,311.71 per ounce by 1300 GMT, while U.S. gold futures gained 0.3% to $1,311.2.
Silver was down 0.3% at $15.42 per ounce, and platinum fell 0.6% to $853.51 per ounce, but was up about 3% so far this week.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.