GBP Awaits the UK Supreme Court Rules on Article 50

GBP Awaits the UK Supreme Court Rules on Article 50

On Friday, the Greenback tumbled after Trump's inauguration speech. As investors were disappointed that Trump, who went against expectations, did not mention any of his economic plans. The U.S. dollar index, which measures the greenback’s strength against a basket of major currencies, settled below 101 pips.

Gold prices settled at $1,210 backed by a soft USD. Technically, the precious metal is awaiting the decision of the UK’s Supreme Court and could re-test the psychological level of $1,200 or hit $1,221.

The Sterling pound traded below $1.23, as data showed British retail sales fell in December, for more than four and a half years. However, Cable touched $1.24 after Trump’s speech.  In addition, the UK’s Supreme Court is due to deliver it’s adjudication on the interpretation of Article 50 tomorrow as it will rule on whether the government has the right to trigger Article 50 and take the UK out of the EU.

Euro settled at $1.07 as European Central Bank President Mario Draghi said, any country leaving the euro zone would need to settle its claims or debts with the bloc's payments system before severing ties.
Technically, the common currency is unlikely to maintain its gains for a long time as it depends on the Greenback’s strength. 

Also on Friday, Oil prices rose as much as 2%, ahead of producers' compliance meeting, as the world's biggest oil producers would demonstrate compliance to a global output cut agreement. U.S. crude settled above $53 and could hit $55, if everything goes well with the upcoming meeting of the world's major oil producers, which will be held later this week.

The most important economic events:

  • EUR Euro-Zone Consumer Confidence (JAN A) – (GMT 17:00) – Medium - Forecast (-4.8) – Previous (-5.1).

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