Pound Slips Ahead of Key Parliamentary Votes on Brexit

GBP

The British pound weakened against major rivals ahead of crucial votes at the parliament today. The House of Common rejected Theresa May's deal on the 15th of January. Series of votes will take place today which could help in finding a way forward. During the past week, the British pound appreciated by more than 2.5% as the chances of a "hard-Brexit" dropped. Investors should follow up on the latest developments as they will have a direct impact on the pound. The GBPUSD traded at a low of $1.3128, and the EURGBP bounced to 0.8710.

USD   

The dollar index which measures the greenback against a basket of major currencies ended lower for the second consecutive day at 95.76. The signs of a global economic slowdown are weighing on the chances that the Federal Reserve could continue to tighten its monetary policy in 2019. Market participants widely expect the Fed to adopt a "wait-and-see" attitude instead of hiking interest rates every other meeting. The USDJPY tumbled to a low of 109.15, and the USDCHF dropped to 0.9905.

Metals

Metal prices edged higher as the dollar declined ahead of the Federal Open Market Committee two-day meeting. Gold prices climbed to a seven-month high of $1308, and the silver ounce jumped to a six-month high of $15.86.

Oil

Oil prices lost more than 2% amid rising woes of a global economic slowdown. The West Texas Intermediate crude futures fell to a ten-day low of $51.31, and Brent futures dropped to a low of $59.52. However, oil prices could find support from the expectations that the United States could impose sanctions on Venezuela's crude exports. On the other hand, market participants await the American Petroleum Institute weekly crude oil stock later today.

Major Economic Events

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