Pound Soars as May Secures Legally Binding Brexit Assurances

Pound Soars as May Secures Legally Binding Brexit Assurances


The Pound strengthened against other major currencies ahead of the meaningful vote today. May succeeded in securing legally binding changes that will strengthen and improve her withdrawal agreement. The House of Common will vote today on the improved deal. May promised earlier that if her deal was voted down, she will provide the lawmakers with the opportunity to vote on whether to leave the European Union without a deal and then another vote to delay Brexit. Several economic indicators will be released today. However, the main focus will be on the Brexit headlines. The GBPUSD climbed to a two-week high of $1.3288, and the GBPAUD jumped to 1.8782, the highest since the Brexit referendum.


The dollar index which measures the greenback against a basket of major currencies finished lower for the second consecutive day at 96.95, as the investors rushed to European currencies amid optimism over Brexit deal. Market participants await the release of February inflation figures later today where a surge in the CPIs could raise the chances of hiking interest rates in 2019. The EURUSD rose to a high of $1.1275, and the USDCAD tumbled to a low of 1.3380.


Gold prices held earlier gains as the dollar weakened following Brexit developments. The price of a gold ounce hovered near $1295, the silver ounce rose to a high of $15.40, and palladium advanced to $1540.


Oil prices extended gains amid talks that OPEC+ would extend supply cuts till June. On Sunday, the Saudi energy minister Khaled Al-Falih stated that the ongoing supply cuts aren't likely to end before June. The West Texas Intermediate rose to a high of $57.16, and the Brent futures climbed to a high of $66.97. Market participants await the release of the weekly US oil stock by the American Petroleum Institute later today.

Major Economic Events

GMT Country Event Expectation Previous
9:30 UK GDP (MoM)   -0.4%
9:30 UK Manufacturing Production (MoM) (Jan) 0.2% -0.7%
9:30 UK Industrial Production (MoM) (Jan) 0.2% -0.5%
12:30 US Core CPI (MoM) (Feb) 0.2% 0.2%
Tentative UK UK Parliament vote on Brexit deal    


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