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By Associated FX Analysis Team

Kantox currency update: pound jumps after the rejection of a no-deal Brexit

Published March 14, 2019

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The pound rose sharply on Wednesday, after the UK Parliament voted down a no-deal Brexit, just one day after having rejected Theresa May’s withdrawal plan, which opens the doors to delay the application of the Article 50.

Regarding other currencies, the dollar extended its decline on Wednesday to hit its lowest levels in nine days despite the positive surprise in the US durable goods orders, which has pushed the euro to one-week highs.

EUR/USD advances to one-week highs at 1.1340. The euro appreciated on Wednesday for the fourth consecutive day, to extend its recovery from last week lows at 1.1175 to session highs at 1.1340 so far.  As at the London market opening times, the EUR/USD is trading at 1.1335.

GBP/USD jumps to nine-month highs near 1.3400. The pound surged on Wednesday, boosted by the rejection of the no-deal Brexit, to retrace the last two weeks’ losses and hit a fresh nine-month high at 1.3380. As at London market opening times, the GBP/USD is trading at 1.3330.

 USD/JPY: picks up to week highs above 111.50. The dollar pulled back on Wednesday to hit support at 111.00 but it has bounced up firmly on Thursday’s early trading, to reach one-week highs near 112.00.  As at London market opening times, the USD/JPY is trading at 111.75.

 

In the Calendar Today

 Today, we will have only second-tier indicators in the calendar. The only indicator worth mentioning will be the US New Home Sales, which is expected to show a significant decline in January and might have a moderately negative impact on the US dollar.

 14:00   GMT      US: New Home Sales (MoM) (Feb)
Prev: 3.7%         Cons: -0.9%

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