CURRENCIES: British Pound Climbs As Likelihood Of Brexit Delay Rises
12 January 2019 - 12:00AM
Dow Jones News
By Anneken Tappe, MarketWatch
The British pound strengthened against the U.S. dollar and the
euro on Friday after U.K. newspaper The Evening Standard reported
that a delay to the March 29 Brexit was becoming increasingly
likely.
While the idea of a Brexit delay was refuted by Prime Minister
Theresa May's government earlier this week, Friday's report said
that May's cabinet ministers saw the likelihood of a delay rising
(http://www.marketwatch.com/story/british-pound-jumps-after-news-report-says-brexit-delay-likely-2019-01-11).
The pound climbed to $1.2811 in response, versus $1.2749 late
Thursday in New York.
Sterling also strengthened against the euro , with one euro last
buying GBP0.9003, down 0.2%
"Sterling's aggressive appreciation following the report
continues to highlight how the currency remains extremely sensitive
and highly reactive to Brexit headlines," wrote Lukman Otunuga,
research analyst at FXTM.
The U.K. Parliament is slated to vote on May's Brexit deal on
Jan. 15, but market participants are skeptical whether she will be
able to shore up enough votes. The deal had initially been headed
for a December vote, but was postponed under the assumption May
would otherwise be defeated.
On Thursday, Labor Party leader Jeremy Corbyn said the Brexit
deadlock demanded fresh elections.
Also read:Brexit Brief: Business lobby warns of risks to
thousands of U.K. jobs
(http://www.marketwatch.com/story/brexit-brief-business-lobby-warns-of-risks-to-thousands-of-uk-jobs-2019-01-11)
The U.S. dollar started the session on the back foot, with the
ICE U.S. Dollar Index down 0.3% at 95.256, retracing Thursday's
gains
(http://www.marketwatch.com/story/dollar-inches-up-from-3-month-low-ahead-of-busy-economic-calendar-2019-01-10).
See:Big Mac Index shows the dollar is at its strongest in 30
years
(http://www.marketwatch.com/story/big-mac-index-shows-the-dollar-is-at-its-strongest-in-30-years-2019-01-10)
Dollar traders are awaiting consumer price index data for
December at 8.30 a.m. Eastern, which is expected to show a slight
contraction.
In other U.S. news, Chinese Vice Premier Liu He will be in
Washington
(http://www.marketwatch.com/story/chinas-top-trade-official-expected-to-visit-us-for-trade-talks-mnuchin-says-2019-01-10)
at the end of January to meet with trade representatives.
Also check out:BOE's Carney sees the U.S. dollar eventually
losing its reserve-currency status
(http://www.marketwatch.com/story/boes-carney-sees-the-us-dollar-eventually-losing-its-reserve-currency-status-2019-01-10)
In other major currencies, the euro strengthened to $1.1536, up
from $1.1500, while the dollar weakened against the Japanese yen ,
buying Yen108.29, down 0.1%.
(END) Dow Jones Newswires
January 11, 2019 07:45 ET (12:45 GMT)
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