Forex; Sterling Hits Highs on Brexit moves – FxPremiere.com – The GBP hit a two-year high vs the euro Friday and a three-month high vs the US dollar on growing confidence that the U.K. can avoid crashing out of the EU.
The U.K. newspaper The Sun reported that Ireland’s Democratic Unionist Party is prepared to conditionally back Prime Minister Theresa M Brexit Plan B.
If this report is true, I expect the GBP to rally to 1.37 vs the US dollar. A technical breakout to 1.37 is also a possibility.
The deal faces a debate and vote in Parliament on January 29TH 2019. For May’s deal to be approved, she will need to convince far more than the handful of DUP lawmakers. Her plan was rejected by 459 votes to 205 in the House of Commons this month.
The GBP/USD pair gained height as high as $1.3137 in Asia but retreated to $1.3076 by Friday by 04:05 AM ET (09:05 GMT). The pound also rose as high as 1.1595 vs the euro, its highest since mid 2017, after ECB board members hinted the bank may not raise interest rates in 2019.
Meanwhile, the U.S. dollar index that tracks the greenback vs a basket of other currencies was down 0.3% to 96.144 as traders digested the latest news on U.S.-China trade disputes.
The U.S. dollar index, showing a basket of six major currencies, was up 0.11% to 95.87 by 03:00 AM ET (08:00 AM GMT).
The Australian dollar was lower, with AUD/USD losing 0.7% to trade at 0.7095.
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