Pound Jumps on Boris Brexit Promise

Pound Jumps on Boris Brexit Promise


The British pound kicked-off the week on a higher note against rivals on Brexit hopes. Yesterday, Boris Johnson launched his party's election manifesto and promised to bring the Brexit deal vote to the parliament before Christmas if he wins the December 12 election. Currently, opinion polls show that the conservative party is in the lead. The GBPUSD climbed to $1.2875, the GBPJPY edged higher to 140.18, and the EURGBP drifted lower to 0.8562.


The dollar index, which measures the greenback against a basket of major currencies, hovered above 98.20, holding gains earned on Friday. The stronger November Manufacturing and Services PMI led the recent dollar rally. The US 10-year yields edged higher to a one-week high of 1.792%, the USDJPY rose to 108.89, and the EURUSD dipped to $1.1015.


Major US stock-index futures rallied higher on US-Sino trade optimism. The US National Security Adviser Robert O'Brien stated that a trade deal between China and the United States is possible by year-end. The Dow Jones Industrial Average futures rose to 27955, the S&P500 futures advanced to 3118, and the Nasdaq futures climbed to 8316.


Gold prices plunged as the dollar edged higher along with US treasury yields. The better-than-expected economic data and optimism on trade are supporting the flow to riskier assets. The price of a gold ounce dropped to a one-week low of $1456, the price of a silver ounce fell to $16.84, while palladium extended rally higher to $1791.


Oil prices surrendered partial gains but remained well elevated. Market participants are expecting the world's largest economies to strike a trade deal, which could put an end to their ongoing trade disputes and drive oil demand higher. The West Texas Intermediate crude futures rose to $58.05, and the Brent futures rallied to $63.78.

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German Ifo Business Climate Index (Nov)




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