Forex - Dollar Holds Steady, Pound Dips Amid Brexit Uncertainty
Published Nov 15, 2018 03:41AM ET
Investing.com - The dollar held steady against a currency basket on Thursday, while the British pound dipped amid uncertainty over whether Prime Minister Theresa May's draft Brexit plan will win parliamentary approval.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was little changed at 96.70 by 3:40AM ET (0840GMT).
Fed Chair Jerome Powell on Wednesday expressed confidence in the U.S. economy and said that markets will have to get used to the idea that the central bank could raise rates at any time starting in 2019.
Elsewhere, the pound was on the backfoot, with GBP/USD changing hands at 1.2965, pulling back from a high of 1.3071 on Wednesday.
Sterling had strengthened after May said she had obtained enough support from senior members of her Cabinet for a draft Brexit deal to move forward.
But the pound slipped lower amid doubts over whether the draft withdrawal agreement will get parliamentary approval. It is unclear when that vote might happen.
The euro was a shade higher against the pound, with EUR/GBP at 0.8750, well above the five-month lows of 0.8655 reached on Tuesday.
Meanwhile, the single currency gained against the dollar, with EUR/USD at 1.1342, not far from an overnight high of 1.1351.
The single currency's gains were capped by concern over how European Union officials would react to Italy's latest budget proposal.
Brussels, worried by the impact of high spending on Italy's high levels of debt, had told Rome to revise the budget or face possible fines.
The dollar was a touch lower against the yen, with USD/JPY at 113.47.
Signs that the U.S. and China may be taking steps to de-escalate their bitter trade dispute helped lift sentiment.
Looking ahead, U.S. retail sales for October will be released at 8:30AM ET (1330GMT).
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.