Sterling edged off early lows but remained volatile as traders awaited a statement from Prime Minister Theresa May.
The British Prime Minister will present her proposed next plans to break a deadlock over Brexit.
May’s deal was rejected by a large majority last week. As expected, British Prime Minister Theresa May narrowly won a subsequent confidence vote.
With around two months to go until Britain is due to leave on March 29, investors advised caution around current levels.
While the British currency had steadied above $1.28 levels since last week market watchers warned of more volatility ahead. The pound has recovered nearly 4% from early January lows to above $1.2850 levels against the dollar. However, it still remained about 10% below from the 2018 highs of above $1.43.
Sterling rose about 0.3% from the session lows to trade virtually flat at $1.2868. Against the euro, it was down 0.1% to 88.33 pence.
START TRADINGForex – Commodities – Sterling volatile ahead of Brexit Plan B outline
Markets ratcheted up expectations that Britain would not leave the European Union without a deal.
The U.S. dollar held near a two-week high on Monday. Weakening global growth and data that showed China’s economy slowed sharply in 2018 weighed. The dollar index was steady at 96.388 after climbing to 96.394 percent on Friday, its strongest since Jan. 4.
The euro nudged up 0.2% to $1.1376 but remained in close reach of a two-week low brushed on Friday.
The Australian dollar was steady at $0.7155 after ending Friday on a loss of 0.3 percent.
Oil prices eased as slowing China economy undermines markets. Brent crude oil futures LCOc1 were down 13 cents at $62.57 a barrel by 1207 GMT. U.S. crude futures CLc1 lost 10 cents at $53.70 a barrel. China’s 2018 economic growth slowed to the weakest in 28 years, data showed, at 6.6 percent versus 6.8 percent in 2017.
U.S. financial markets remained closed on Monday for Martin Luther King Jr. Day.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.