Brexit delay vote sent the sterling down 0.82% at $1.3225 in mid-morning trade. Investors supported the parliamentary vote seeking a last-minute Brexit delay.
A day earlier, the British currency soared nearly 2% and reached nine-month highs after lawmakers voted against a potentially disorderly “no-deal” departure from the EU.
Analysts cautioned against putting large positions on sterling due to lingering uncertainty about Brexit. The UK is set to leave the European Union in just 15 days. Just how that will happen is still up in the air. Parliament will vote today on whether Brexit should be postponed for a couple of months to give everybody more time to figure this out. But even if this vote passes, there’s no guarantee that the EU would agree to a Brexit delay. Lawmakers yesterday rejected the option of a no-deal Brexit embattled Prime Minister Theresa May’s proposed deals twice.
The pound on Wednesday enjoyed its biggest one-day gain against the dollar since last April after UK lawmakers resoundingly voted to reject a no-deal Brexit.
START TRADINGForex – Sterling drops ahead of Brexit delay vote
The U.S. dollar index, a gauge of its strength against six other major currencies, was up 0.26% at 96.791. It shed 0.4% overnight, at one point brushing a nine-day trough of 96.385.
The Australian dollar fell after reports that China and the United States had delayed a meeting to end their trade war. The meeting between President Donald Trump and President Xi Jinping will not occur this month and is more likely to happen in April at the earliest, Bloomberg reported. The Australian dollar reacted the most to the report, falling to its lowest in three days, last at $0.7051, down 0.63 percent on the day.
Oil futures reached four-month highs on Thursday, boosted by tightened global supply and a monthly OPEC report which built a case to extend production cuts beyond June.
Brent crude hit a 2019 peak of $68.14 per barrel before falling to $67.85 by 1355 GMT, up 30 cents or 0.44% from Wednesday’s close. U.S. West Texas Intermediate crude futures were at $58.63 per barrel, up 37 cents or 0.64%.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.