The pound edged higher after UK labour data exceeded expectations. However, traders doubt that a Brexit deal would be reached at an EU summit this week, limiting the sterling’s gains.
The sterling rose 0.4% to $1.3210 versus the greenback and 0.3 % against the common currency.
Forex news – Bits & Pieces
North and South Korea met for the first time with the UN Command to explore the demilitarization of their border.
Iran’s oil minister accused the U.S. President for “bullying” other countries to reduce oil prices. He also added that the market suffers from short supply. U.S. sanctions on Iranian oil exports are to begin on the 4th of November.
The U.S. administration announced the 2018 fiscal year closing with its largest deficit since 2012, according to Treasury Department data. Α $119 billion budget surplus in September larger than expected and a record for the month was also released.
The Trade Commissioner of the EU criticized Donald Trump’s rhetoric considering it unhelpful for trade negotiations. Malmstrom also added that EU would have to respond in case EU slammed tariffs on EU cars.
Ahead of EU leaders meeting in Brussels later this week a Reuters poll showed that there is a 25% chance for a no-deal Brexit in less than six months. A German official stated that Germany is prepared well for all Brexit scenarios.
Italy’s budget for next year remains a critical issue for EU. However, the agenda of the Euro zone leaders’ summit this week will not include it. The meeting will focus on the banking union and the euro zone reform.
Forex – UK Labour data boost sterling ahead of EU summit
The dollar rose following firmer U.S. Treasury yields. Forex Traders bought the greenback after a recent drop being more bullish about its short-term outlook. Against its major traded rivals, the dollar edged higher 0.1% at 95.13. However, it has fallen 1.2 percent in the last eight sessions to a three-week low.
The euro edged down following the Italian cabinet on Monday signed off on an expansionary 2019 budget.
The Japanese yen, a preferred currency in times of market instability, dropped by 0.19%. It climbed to a one-month peak on Monday.
The New Zealand dollar soared 0.24% against the greenback supported by a higher than expected domestic inflation rate for the third quarter.
Oil prices edged lower on evidence of higher U.S. oil production and increasing U.S. crude inventories. However, reports of a fall in Iranian oil exports helped to limit losses. Brent crude futures fell by 70 cents a barrel to 80.08$ a barrel. U.S. crude futures fell by 65 cents a barrel from their last close.
Sources: Reuters, CNN money, BBC
PLEASE NOTE The information above is not investment advice.